Gold trades have to be conducted on cash only basis, the condition forcing Titan industries which has made a successful transition from watches to Gold Jewelry retail among others on the back foot as without Gold on lease Payables and Receivables inventory cycle / turns Payoffs would be adversely affected. As we
at advantages.us in yesterday’s update from the 8 core industries, Indian IIP remained 2.0% and Industrial production below 4% was a little cheered by March data being revised buy almost a third to 3.4%. Caital Goods slumped again n april after a 6.9% in March to 1%
Contrary to popular fourth estate perception (considering traders were not locked into HFT opportunity trades, the 4th estate must be the purveyors of only significance) the exit of $2.7 Bln from Indian debt does not affect our CAD very adversely or constitute more than 6-7% of our stock of debt infact probably short-term debt itself would have been unaffected by the withdrawals with a minor increase in Indian yields to 7.28% before the good news stabilised equities and the Rupee trade. The equities traders should thus look at the markets bottoming around today’s intraday lows before 9.30 am at 5750 by the end of this week
Bajaj Auto which weathered the storm till yesterday was the last strike of the “scourge’ and we still feel the markets are not just wanting to be back in business but conducted the bear opening ‘s finest hour in Wednesday open to mark the stability and depth of interest in Indian equities. Back to the IIP, Non-durables are back to 12.5% uptick as we had expected for March ( which should be equally sunny after revisions) manufacturing is nearly 80% of the IIP in its current format and the top 38% core industries including Mining are reported separately. Overall CPI remained at 9.3% and the Rupee is smartly trading up as investors expected no dramatic turnaround in this data esp those following the India business here.
Seemingly ONGC and GAIL are back after the run on OIL prices turned the ship towards pirate shores late last week and markets chewd u the most easy catches on the Rupee crashing thru in its sudden derring do move ( Our take; in defence of the dollar) Titan is still down 13% in afternoon trades, and one expects gold finance NBFCs to be torn apart before they are allowed to defend their continued business model as the CAD crackdown gets back into gold imports definitely prolonging Gold’s recovery in International markets collateral values on NBFC record being under severe pressure, the firms would get by fine as long as adequate margin is proved to be available within this week The Afternoon session recovery has in fact brought the Bank Nifty back to positive scores and dolla r is trading ready to go below the 58 watermark it just breached yesterday. Domestic Institutions are unlikely to respond immediately to this new buying opportunity as market consolidation slows back inflows into Mutual funds whose buoyancy is currently a high for may frm debt fund inflows on the sharp moves in yield, as usual corporate treasuries walking away with late honors.
The Mahindra Satyam – TM merger was a no show on impact as values have historically traded around daily valuations on Satyam for close to 5 years now before and after the company’s crash into oblivion and remaking of the same
Private banks and infracos still remain asked for opportunities for capital in the international Markets, yeS Bank’s completed QIP though earning it special attention in trader sentiment breach in the AM Axis and Idea continue exploding as of ‘yore (no rhymes) for the third session on the trot as they isolate all those with unique knowledge eigens of their ‘apna India markets’ rising 20% in Open Interest today.
As the HCL Tech CEO (Vineet Nayar) mentioned elsewhere in today’s media round ups, people are living in the past in response to a request for comment on the state of Indian IT..the era of app dev will not be back , cloud and mobile don’t look like revenue revolutions, the last one surely a paraphrasing forced on me by being in payless social media’s top of the world look at brands and the weather in politics, economics and much more
However, down to the brass tacks, that does not mean, and everyone at HCL knows, that any HCLT endeavour has an iota better chance the the Patney’s and the iGates, the M&M’s and the Satyam’s of the Indian ICT or the mind T and minds’ i’s conglomerates of also ran in the industry as mid cap. Hexaware was the original mid cap and it is in more Fortune 100 accounts with consulting fellas across the hall than Vineet probably cares for..It ain’t gonna happen. So my two bits of advice for the rest of the ever failing to try middle management at India’s banking and ICT management..stop not trying and quit that useless job. Esp if you are planning to join the “visonaries” at indian arms of McKensie, BCG and the Sofbank venture capital balls in the court of Patni and Mahindras for $50 in ICT investment globally.
Hand it over to Lakshmi Narayana and Francisco D souza. And there’s never going to be anyone to do your work for you anymore, and like you did in government school 20 years ago, you’ll just pick up the microphone and MC it..