5300 is proving ot be a fiesty point for Nifty as it tries to define the new bottom every second instead of trying to breakout after having been beaten at 5370. Of course now that IIP has under performed , down 0.1% for the June Quarter(-1.8% for the month), there may be others out there who waited for this result to downgrade ( markets not sovereign) India, esp as EM expert Goldman Sachs will be waiting in the wings calling india theater absurdly expensive though the strongest for some more time.
Tech Mahindra results were good for a single client focussed company as it makes the final transition to india’s no. 5 services company in Technology Tata Motors probably expected mroe and a hit in profitability for a company in the durables sector is hardly something excusable. Banks however are still strong and any technical redefinition could still lead to better indices overall as the PSU banks alone may take the fall in the Banknifty and reliance has also recovered some confidence and continuing speculatve interest int he scrip
CIPLA is retreating too and that is a good sign for all those scrips you do not ant to take down to earlier bottoms and the indices may never really dip below 5250 except for intraday rushes to complete trading targets. Though we do no have High frequency and programmatic buying in India still, there are defined purchase orders around for the FIIs who choose this route for their India investment portfolio ( Secondary Capital markets)
And here where we are remains anear 5% minimum growth esp with growth in disposable income and a consistent lifestyle upgrade constant for India’s poor and rich alike.