India Morning Report: A dull week, a dull inflation and a bright results season

Indices remain around 5200 levels worried of what they face if they climb and a frustrated Obama in the heat of his reelection campaign, or a FTA agreement with the EU that cuts suties on your favorite Scotch seem disconnected pieces of data without head or tail esp to the market which in $1 Tln of market cap, represents at least 2 in 3 sectors of the Indian economy, which has no seeming trades in agri commodities, no yields that beat inflation and no one that Obama needs to talk to, addressing India at its most important cusp in town hall meetings in a re election tour probably to mollify USIBC members of their existence as a policy support group. India ofcurse continues to doubt the utility of lobbying yet spends millions on the outsourcing lobby itself. Obama’s comments would dovetail nicely when he has to later capitulate on the tougher terms of the outsourcing law and his donors force him to keep costs of doing business in mind. 

Staff Angst at Infosys headlines in the ET on the day of its release of the 100 best places to work, giving half cooked journalistic projects with no background a new depth of shall we say Obama-depth of vision and FCCB antics force Rajasthan Bank promoters out on the defensive as $100 mln ECBs are to be restructured with FII holders including the QVT team that is fresh with a settlement with Wockhardt Air India’s VRS Scheme does offer a straw or two to the INR 300B rescue plan, all of it equity as Kingfisher continues to fly the Indian skies with or without pay

The inflation will be high but there is no scope of further retribution on the indices aas retail investors and DIIs take up the slack to 13.17% and less than 6% while FIIs holdings fell by 20 bpDividends from india inc fattening promoters and enabling cross investments rose by 80-100% at many large companies including INR 30 B each for Azim Premji and Mukesh Ambani

ONGC an dindia’ sbottom of the pile proactive listings fromt he Energy sector in cooperative pacts with State oned Oil companies in Brazil, China and now columbia and Norway just about seem to be the only piec e of good news even as the Rupee corrects back this week further to its Friday hit to below 55, results season reduce to a circus of the absurd sell on news and do not invest the bears are coming kind of envelopes to mask the characteristics of winning companies for any new investors in the market, looking at good and bad results like they were same at the end of the exercise in August. WPI Inflation will likely remain near 8% and CPI later next week likely even higher than the 10% score of last month

 

 

 

 

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