India Morning report: Nifty after another midweek “holiday”, at below 7800

One’s economy has definitely reached a new level of Financing challenges when easy consumer credit at 10-30% (quite a range) becomes the mainstay of Financial services business expansion. That said, these are early days in the recovery andit is not probably a sign of worry yet despite consumption having kickstarted proceedings while we wait for investment to turnaround and all the discussion of stalled projects in infrastructure and non infra sectors. The FIIs have definitely flown out if they could and I still believe most of the new stock iof investments prima facie has no reason to leave or even indulge in more than perfunctory profit taking.

For me, this would be a great buying opportunity, my midcaps still restricted to recent IPOs and the 3-4 Pharmacos we have discussed led by Glenmark and yes Divislab has sold down and will be selling down further but is neither a short opportunity nor a buy. HCL and Tata results, we will venture, even for satta, good from far and far from good, though Micromax (unlisted) and a few other ecommerce investments like Snapdeal look juicy and in for a hot buzz when they do list on the exchanges

On year growth at HCL continues to consistently outperform the bigger industry peers but continuing to grow slowly on the Topline, while TCS consistently added in double digits to the Topline and bottomline, but really both showed that the best in IT sourcing has gone away and the safe annuity business a temptation  but far from the main draw of the Economy

The EPFO allocation in Equities in NPS os also increasing. And we have a new CEA, whose views on China’s Economic Dominance ( in his book Eclipse:..(2011)) are definitely another piece of the global jigsaw puzzle falling in place. Cheers to that!

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