India Morning Report: IDFC and GMR join the IPO bandwagon

IDFC would like to dilute foreign shareholding a little before the IPO to get an advantage for its banking operation and GMR offering would further dilute a pretty large equity base but it is likely to find a reprieve in cost of capital from public equity given the debt overhang in its projectised sector that will continue. The news probably aligns with the coming announcements on the $1 Bln Road Infra fund being readied and lends to the required financial closures pipeline in the infrastructure projects to come.

ETNow is leading Thursday with the fact of improving traction for delistings with Castrol and Bosch also winning greatly. As always such cash interventions in the market greatly enhance its capacity to wait for the Economy’s fundamentals to prove themselves and markets look to be steadying faster for a move near to 8300 though a prediction in that regard is literally shooting in the air above the immediate 7800 levels which would be new highs for the market.

In Sensex terms that means nearer the 28000 mark so still within the sell side pontification for 30000 on the Sensex. The Bank nifty having come out on top with Fitch and others upgrading GDP targets probably mean Banknifty will easily cross 160000 without selling pressure, the increased confidence also coming from continuing double digit credit growth and the final canning of the NPA blues at the better performing PSU banks.  PNB remains a sell in this sector bu tBOB and SBI may well gain free momentume tripe to completely disregard the falling out of such bank stocks including Union Bank and Central Bank of India

If markets retain intra day gains today they will likely trade at 7800 / 260000 for the rest of this week before the pre budget expectations and the Rail budget tighten up stock specific plays from Monday. The Rupee meanwhile reacted well to real inflows returning to the fixed income markets post Oil crisis as it gained an even 1% to 59.50 levels ahead of another move below 59



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