A land of loan waivers, high energy taxes and still a Rupees Trillion in Divestment, Crude prices still falling and the markets waiting for another 6 months for a recovery probably does hint at a vital flaw why only Banks are left with potential to invest, being at the right place to take advantage of a cyclical uptrend. I am going to focus on the fact that less than 10% of representative Consumer companies are listed and only a few more together cover the branded market in India, and in verisimilitude, our infrastructure heroes have banked either too high on private debt or too early on equity and the lack of depth of these institutions could be troubling India also, given that markets already feel the lack of downstream Tertiary and Secondary segment businesses on the deep Financial markets of the country.
India debt remains in demand and yields are well on their way to the southern edge of the corridors, it is still time for investors to buy more yield in the Indian market, and consumer finance’ early rush bump on the statistics probably clouds the real potential ahead too pointing to a lull in the business models of these darlings of the market for a few months. India’s Defence spending challenges and the infrastructure quandary should probably be discussed together esp as the Rupee seems to hold its own , and this time not on advance investor flows and despite weakening export growth story having played out post high depreciation instances in the recent past. I would like to buying opportunities in banks with all pair trades taking Kotak/Indusind at the short end or all other trades taking SBI and PNB at the Long end of the trades