India Morning Report: DLF down and out, Rupee moves below 61!

The DLF saga, not a corporate minion by any standard, will be the litmus test to judge India corporate governance. Despite being a real estate ( and censured/sanctioned for a under the table real estate deal in an obscure subsidiary – by product of a still elaborate going clean exercise before IPO) denizen, the company continues to enjoy much better brand equity and corporate governance reputation scores than a UB or many other blue chips in the India space comparable to Infosys. DLF plans to reduce balance sheet debt are definitely hit for the next couple of years. (the SEBI action expressly bars themn for 3 years)

However that may be, The corporate is out of privilege right now before its SAT appeal on the case and markets are reeling at the open with the scrip also a favorite with those hoping for a infra come back, skewing its case with FIIs who can see the risk of investing in Corporate Governance starved India in a DLF. Equity inflows, however rare and still bucking the trend from down and out Asia, will remain in the green for India given the strong cyclical recovery prospects and given that FIIs would hardly be expected to looking for a better IIP immediately unlike the local proliferation of “satta”(speculation) and “satta”(with a soft t sound) (electoral politics)

Markets expect to lead from speculative fronts, rooting for a CV market recovery as Indusind reports, however the CV market demand is likely to lag the vehicle market overall. Markets will likely hold 7850 and go back later in the afternoon after the DLF impact has been isolated as trhe overall market mood was/is very positive this week.

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