India Morning Report: Heavy Results wednesday pours cold weather on the sentiment

YES Bank was the first in the morning post the ticker items yesterday and sentiment was upbeat before HCL T probably and the wait for TCS bit into the rest of the rally with a 16% increasein Profits and 2.9% NIMs likely to see a rainbow in increases of rate spreads bolstered by better charges. NPA additions of INR 60 Crores o the Net NPA are hardly material despite the big tick to 0.30% Gross and 0.08% Net NPAs PAT is up 21% bt NII increase to INR 6.65 Blnputs it behind Indusind, if only for a little bit. Indusind portfolio problems continue to outweigh its increased analyst access at this juncture. Hedging, Advisory and Retail charges were highlighted by YES as Monga admitted to a lack of growth in the biting Transaction Banking business in Asia. Kotak is still a short from our side for being on the other side relying on succulent but few enough wealth accounts and other financial services businesses. It seems YES still looks to more NRE deposits. The promised write back of MTM losses has added another INR 56 cr to the profits after a muted show in Q2 on moving all bonds to HTM, but I can see the spreads for the Bank cross back above 3% even if Kotak and others get to starting a price war after laying low across the crisis rainbow

Anyway this late late edition of the Morning Report at 3 pm shows up the indices in the red, yet holding the gains for the week ahead o fthe last day’s bigger results before the markets close for the week. Bharti quickly closed its move from the top of its 335 range yesterday to 315 levels in the afternoon, probably ready to pull up the market again in this week or next Stop Losses on a Bharti should be below 305 levels or one could even take the usually not advised 10% stop at 290 levels as this is a good price to bite

The shift to HCLT and TCS in the afternoon is likely to be added positions and not switched from market sentiment in power, infra, Pharma and others esp with Glenmark and Auro also sustaining interest. The breakout fail in Idea should be instructional on the Sector remaining a jilted lover reacting to each item of news on the ticker again

HCLT Margins continue to surprise in a Vineet Nayyar legacy at 23.5% EBT/26 EBITDA with INR 81 Bln revenues showing an enticing sequential growth likely to go missing in this industry thus making investors waiting for positive expectations tired of the ride esp with Infra desks now a third of the business on the ledger

Axis Bank also traded most of the day in a positive expectation zone. BOB recommended a hefty INR 11 Dividend stub on the ticket.

In Auto, Bajaj Auto again rushed ahead on the pair trade to Hero which still rose putting paid to any hiop for Short strategies again chained to a flat market on Tuesday. More than a dozen good breakouts have added strength to the list of deep Volumes traded as the markt remains stock specific

Its a good idea to get NTPC stakes farmed to other PSUs but it does not seem likely and that no looking likely lends again, renewed strength to a BJP / Modi only camp for some vicious chain of favor building behind the scenes. ITC is buying up some good traction with the pricing increases completed in its cigarette business

BOB has definitely added an increase in dividend beyond the 2013 INR 23 after he interim dividend from the Board meet yesterday

YES Bank CASA has inched up on 55% increase in SA ttm Rates are unlikely to come down even if the RBI heads for a rate cut





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