India Morning Report: Up again, Down Again..but the investors are staying in

Probably a function of the loading to debt markets, but this data will show up on a consolidated basis down the line. The Nifty recovered more of the tomfoolery around the GAAR provisions which the new Finance Minister is aligning to as BJP with a majority vote is likely to continue with the infra push and can conventiently keep its traditional guard/vote bank/ideological corner of the PM’s mind hope for Mom and Pop kirana stores and other FDI that affects masses. While welfare is tuned, the business cycle is definitely back and CPI is expected to catch up with the cuts in WPI translating into lower CPI goods and services baskets. CPI for June returned to 7.31% with Cereals and Vegetables leading the way down at under 9% and 8% respectively as Food was tucked in below the 8% mark.

The cut in TCS and IT companies is encouraging for the market fundamentals as the Depreciation candy refuses to perk up blind speculation on stocks effectively still battling long term decline and maturity issues in their key markets.

Banks have to lead the cyclical sectors back while GMR and IDFC look set to continue a ‘monotonic out performance’ from here. Relinfra ‘s bullish move seems to have put off the broader markets again however, a distinct unease in the index as always coincident with the upmove on the Anil Ambani stocks likely to come together with Rel Infra

Proctor & Gamble seems to have said a few things about its consumer markets plans rolled out in 2010-11 and looks like will be fun to watch. Tata Global and P&G however could also be running on empty as investments from Tatas in the former case will unlikely speed up and the resulting loss of potential business is probably running away a lot of likely Starbucks customers a s well with their higher prices being key in the QSR markets , customers still hoping for Starbucks Coffee experience at Coffee Day prices as proven to Barista/Lavazza.

In unlisted business, we haven’t heard of market performance comparisons between Amazon and flipkart and the challengers or from McDonalds and the Pepsi restaurants that rolled out new expansions in 2012


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