July and August data that comes in the next few weeks could make the data for June and an almost negative IIp at the cus p of the biggest Rupee depreciation move since May 22 seem like next to nothing in comparison as Services crash in on the devolved growth mandate and curbs on non essential imports kill any remaining Hindu growth consumption in the Economy. Auto sales reports for July from Siam are as low as 131,000. Mauritius and pakistan could robably account for more cr registrations in a day but that is not rater affecting India inc.
The day has started well, with the obvious move back in Power NBFCs that could well merge into any revival of demand even as investment lags in corporate India have no end in sight. The revival of demand in such services could lead the way back to growing inventories , before they become a hangman’s noose around dealerships and the robust credit is used to demand off take back to a positive IIP. Today’s IIP reports and Q2’s first GDP estimates next month could thus see their worst data to come . Cipla’s results for example showed a 17% domestic sector growth, a continuing island where branded goods in both FMCG and Pharma will continue winning share at the expense of the unorganized market in sch a slowdown and Corporate India and Banks could easily maintain a non negative topline in the September quarter
Hero Moto is already responding to the covering rally as if its worst is over but then that is just a n ver motivate d market looking for trading gains as sBI results bringing in the last wreath for this quarter’s rituals on a continuing mourning for unreported asset losses being absorbed into the system even as the banking system gets ready for new stresses on asset quality as interest rates rise even before the coming injections of liquidity once the rupee stabilizes, but Corporate India performance and the continuing unique growth measures of India ensuring that things do not continue n the worse vein but grow back a clip from here even bringing back investments as Savings and investments have both been cut to the bone.
Jyothy Labs reports another big jump in profits to 287 mln after a` 4920 mln profits from Cipla even at a bare 25% EBITDA shining as Sun Pharma’s EBITDA after a bad quarter is still a giant 44% on almost a $1 Bln in Sales but needs to be penalized for the ` 3000 mln loss this quarter from the settlement
- Cipla completes Cipla Medpro acquisition (thehindu.com)
- India Morning Report: Rupee completes its big move (2 days before June NSE FO expiry) (awardz.wordpress.com)
- Wockhardt set to join billion-dollar club (elcidharth.com)
- India Morning Report: Sun Pharma finally breaks stride (ha! Stride Arcolabs wins) (awardz.wordpress.com)
- Gold Premiums in India Seen Extending Climb to Record on Curbs – Bloomberg (bloomberg.com)