DLF judgments seem to really decide speculator and investor sentiments together and adverse judgments against the erstwhile Market Cap leader for India is sooner or later liable to become a transparent weakness of the India story though one shudders to think that someone in Gujarat may already consider another smaller group to be dLF’s equal in this light ( from the days of India’s jugaad) Meanwhile, it might be good to catch up albeit delayed on the new supporting role in India’s super power story with China suffering badly in exports and being at least 2-3 times more sensitive to import fluctuations , with their direct link to consumer stories we have avoided despite an equal interest of global Consumer majors. That also translates to our slow consumer story in India as we have frequently detailed in 2010 and 2011.
However that may be consumer cyclicals esp non discretionary incl FMCG and autos are definitely hoping for a better deal on the bourses and the end of this correction is also not more than another 150 points ont he nifty which nowadays should have reduced to 200 points on the Sensex from the early expected 250-300 which in terms of indices supports and resistances will decide whether the next support is broken too.
Stay invested in ICICI Bank, HDFC Bank, Yes and IDFC. (There is no real trade yet in Yes when it settles lower , too few shares and decided by one guesses too few brokers – market makers keeping it in play) A big short on Maruti from us for a new year celebration..
In relation to China, a.m., China equities continue to dominate FII attention and that does not take away from the economic argument we led with as equities do well only on low volumes despite integration and virtual opening up of Shanghai markets through HK and the real Economic snafu for the Yuan and China will be the continuing to slow down growth, while it actually hopes to grow higher imports as growing consumption is key in keeping growth steady while it corrects the reform direction, lending credence to India gaining a comparative advantage and another chance to catch up with big brother.