Except of course, Bank of Baroda and Bank of India, the PSU Banks who along with All Bank are in front of the NPA tether and are likely to again underperform in results announcements today undermining the market’s expectations with a definite taste of the macabre doing the paperwork accounting for to decades of profligate lending. In more operational markets language, others like Dr Reddy’s also hold the key to big moves as markets let go of smaller volume picks not in fashionable upside with institutional investors chasing Indian weightage in their indexed EM funds. That of course includes Hero losing share to Honda and Maruti making 3X profits with the Yen a big part of the story this quarter.
IDFC is likely to get a good post results after taste into portfolios (despite its ext from MSCI) and so it will be crucial that it comprehensively outperform as foreign investors come back to India bonds and equities unconcerned about coalitions and hung parliaments. The No Taper refinement yesterday was not material to their return either though it is not a carte blanche as the more optimistic from Asia might have expected of Lady Yellen.
Cipla bore a heavy brunt of the funding trade and drags some of the other (Lupin) Pharma choices with it while Glenmark and Cadila will continue carrying the market flag with meaningful bumps from export earnings and real greenfield growth in market development the mid cap strs have shown to be ey
The expiry day seems to be ignoring the 6350 target in the morning session but it may just become a case of having decided on its own expectations for these results candidates. Retail investors shuld not be expected to return in the middle of Diwali spending season or even otherwise. The Indian AMCs have together more than INR 8 Tln under their belt currently and like the taste for FIPS showed are not averse to increasing enchantment with Balanced Funds as Bond markets xpand(General direction ypothesis to play out till 2025)and pension players get active taste of equities along the general direction set back in 1993/2001
Banking hopefuls like Magma Fincorp and Muthoot report results as things look to get better for NBFCs. Now is a good time to load u on infra NBFCs both Powergrid and REC/PFC/PTC
As mentioned yesterday Bharti has crossed a rubicon with Africa markets reporting profits as new Telecom auctions also level down on expected prices in domestic circles
- India Morning Report: The Morning after and the rush to October expiry, pre Diwali (awardz.wordpress.com)
- India Morning Report October 30, 2013: The Morning after and rush to exiry as Diwali weekend looms (awardz.wordpress.com)
- India Morning Report: IDFC on way to become a financial conglomerate (awardz.wordpress.com)
- India Morning Report: Infosys still chooses to report into the weekend (awardz.wordpress.com)
- India Morning Report: Banks earnings, GDP scares markets despite inflows (awardz.wordpress.com)
- India Morning Report: HUL divines the uptrend, shift in stock weights (awardz.wordpress.com)
- Bank Policy Tuesday: RBI Governor completes policy action (awardz.wordpress.com)