India Morning Report: etihad, Air Asia take to Indian skies.

etihad completed all formalities of the INR 22.5 Bln sale to Jet with SEBI noting that no national regulator had any remaining concerns and that the firm’s agreement with Jet Airways satisfied questions of management control residing in India. Air Asia fends similar questions from the press as it launches operations in India with a locally recruited management and no active Indian partner in sight. Air Asia remains unlisted, while existing Jet executives leave and etihad gets 2 Directors on the board and probably a say in the new CEO appointment

Jignesh Shah meanwhile cooled his heels in prison and the Rupee edged up after causing heartburn at both HSBC and StanC which reported dismal emerging markets business down 35% for HSBC and no numbers released by StanC which has active positions in both the IDR (Indonesian Rupiah) and the INR (Indian Rupee)

Sintex and Amtex Auto in midcaps had a final home run after 25 odd years, Sintex reporting its first INR 13Bln contract for the new Infra Division and Amtek also almost doubling revenues to INR 9 Bln in Q2. ARCIL is obviously back on the Indian networks as banks disposed off more than INR 50 Bln in the period till March ffor quick profits from NPA. Erstwhile sales to ARCIL have been only for final disposal, killing the business model and blocking the flow of assets thru the channel created for the express purpose in the very first wave of reforms in 1995 under successive Congress and BJP governments. Coalition politics is here to stay as markets battle the feeling while sticking around the new 6700 levels.

Glenmark’s 75% reduction in Net Income is not a permanent loss and will be repaired in due course we keeping faith in performing businesses like that in paucity in India. Jyothi Labs may however continue to provide shallow market making and consequent investor troubles as it establishes its brands post SPIC acquisition.

Glenmark is already guiding a 18% dmestic market growth and a double digit growth in US and a core EBITDA in excess of INR 15 Bln on growing R&D spend

Markets thus remain a good buy opportunity thru counting of votes in May and consequent Government making whence the India story kicks in one or other forms

Yes Bank and IDFC remain great picks esp post monsoon thru March 2015 along with ICICI Bank and HDFC/HDFC Bank. The Bank Nifty is close to all time highs again after two consecutive good days to 13120, SBI probably riding the Canara Bank reprieve for the sector till its own troubles become public again with India’s biggest bank unable to stem the rot in bad assets despite aggressive NPA sales to ARCIL and others.

Talwalkars reported great results, apparently on target to achieve positive cash flows despite a continuing large investment program in n new locations and a new premium gym franchise. Margins are 58% in the current quarter. Wonder La of Bangalore was also listed today.

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