India Morning Report: Some New Shoots , Some Old Short Stuff..Nifty Rolls Right In 2013

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Some interesting first moves from Bankers seemed to be on in Pre Budget parleys on Monday with Bankers looking for tax wrteoffs on loan NPLs to encourage new fair practices and bankers emerging with a Commodity Transaction Tax to help the government tide over losses from the ensuing discontinuation of STT as Securities Turnover has stagnated since 2009 despite the market being in the bull orbit for over 6 months

Meanwhile the first novel biologic from Biocon has been approved for marketing in the US. Itolizumab’s successful clearing by the Indian DGCI after meeting the treatment score for primary and secondary endpoints in the treatment’s clinical trials. A read of the last investor presentation in April shows that the company will find best market openings in Mylan’s oncology drugs and this new psoriasis treatment in global and US markets while keeping pace with Global partnerships in Syngene with big pharma and obviously growing in the Diabetes treatment segment which has been growing equally well in 2012 even after a good 3-5 years globally.

One wonders though why coverage has been initiated seemingly in private banks with sell calls on HDFC Bank again probably just because of hopes of a rate cut receding before the release of comprehensive production data. Selling is however unabated in PSU banks and they  make big shorts with good targets while the Banknifty, Nifty and even the other bull/bear picks on networks today like Renuka Sugar seem like well left alone including any bump in Goldman Sachs and Credit Suisse /Morgan Stanley backed Bajaj Auto, Tata Steel or other stories. Nifty 7000 wis more exploratory than a serious accusation by the sell side team at GS and Banks Pharma and Retail consumer (discretionary incl ITC not HUL) remain firecatchers in the rally(ies) to come in 2013. We ourselves expect GS has underplayed China and even Indonesia in the Asia spreadsheet released yesterday (Check ET of date) Defensives from mining stocks are especially looking ripe for accumulation in portfolio giants allocated to this side of the Himalayas

Meanwhile Kaya (Marico’s hair and skin care saloon business) and Spencers ( RPG’s Food world led retail superstore business) ill be spun off into listed IPOs in 2013. kaya is a part of Marico’s core operations and Spencers is apparently ready to be spun off from the CESC utility balance sheet for the Goenka team

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