India Morning Report: Markets reassess the strength at 5650? (boring headline!)

The nifty of course is now at 5580 but trying to keep its chin up with telecoms building a new stream of victory tamponade for the analysts. However both Idea and Bharti have truly won in the 2g/3g bidding games bringing public auction methods to a knee with a little help from a redesigned judiciary and CAG. A cynical view at best but yet it explains more or the market than any other stay flat till you get to buying hordes strategies. 

The Dollar starts the week in markets of the orient at the promised weak note, markets assuming liquidity but more than that the Japanese covering of the Dollar seems to have united Dollar trading streams in the mainstream markets wth that of the AUD bullish trades ( the RBA will really shoot the moon when it really really happens) The Chinese Yuan in the meantime seems to have strengthened pretty big at 6.22 considering the currency’s range and the internal liquidity build ups may start having a currency impact taking the Dollar stronger when this current move flatlines. Till then the Pound and the Euro are both enjoying the big reprieve and are likely to trade stronger ahead of Monday US markets open. US equities will open strong. Again it underlines how India’s limited weightage should finally ensure its moves are aligned with Global markets as many times as they are independent. 

For a moment Energy politics in india’s markets is coming as secondary to the Telecom Politics which has devolved in favor of the private sector markets. The NPA saga for baanks too has only strengthened the need for markets to be discerning in their stock selection while the broader ETFs like GILTs run out of real returns this quarter but specialist pickers may grow the best strains yet in individual portfolios. Looking promising are coffee, retail and pharma with ITC and YES missing the bus for big time portfolio adds after Bharti’s unseen comeback in the auctions and the return of a profitable operating structure in its biggest market(s) in the subcontinent