TCS reports early today kept markets busy with HCL redenominating and the defensives like Hero up in sympathy as the currency tracked to 60.20 levels. Real estate looks lightly positive, waiting for real trends to emerge and vulnerable to speculative runs in the smaller midcap players, Indiabulls and HDIL still holding the sell end of many a pair strategies based in fundamental value in the markets. IDFC should probably move into channels above 220 levels for the markets to get a complete picture on the available value in the market and a deeper sectoral look at real estate is unlikely as most midcap and large players have already been called out on their strategies in the last 10 years leaving the new propositions for infra specialists globally or new teams int he unlisted/PE space.
The TCS $2.66 Bln revenue topline is in line with the workhorse’ stabilisation in both NA and European markets and the Indian currency will also appreciate back from 60 levels
Meanwhile SBI has redenominated itself to 2600 levels as HDFC Bank and ICICI Bank report next week. Glenmark and Cadila have room for a run with IDFC and YES Bank as some Energy Companies (OMCs) also provide upside opportunities as the producers ONGC and GAIL stay south finishing their moves on the pricing news alternating with the Power NBFCs. Bharti and ITC are likely to go to the top of their trading ranges and Sun Pharma remains a mystery as it is unlikely to back its sterling scrip performance with any on ground upside in performance for the next 2-3 years despite the prognostication of good times for the Pharma Industry.