India Morning Report: Yes, a resurgent festive season and the earnings were WOW!

October's Palette

October’s Palette (Photo credit: dibytes)

will it, won’t it. A flavour thats missing from most mature markets and though SEA markets might still like to flatter JP Morgan and Goldman Sachs for their unlisted and pre IPO equity investments in these frontier markets and the shallower yet tepidly multi bagging SEA markets, the big moolah is in India and thats where most Foreign investors are headed again with the trade winds during Winter.

The US holiday season may be a little marred by the disasters on East Coast with Hurricane Sandy causing $2 B illion a day New York City to buckle under with never ending losses ( of 20% of the daily GDP) we trundle forth after a big ‘flat off’ September and October as the Twowheeler sales data for October pours in. Bajaj Auto starts the day off with a 411,000 sales figure including a 50000 three whler sales across all markets topping its best performance in twao wheelers in October alone with 62,000 Boxers, 155,000 Discovers and 85,000 Pulsars electrifying the market and Hero ‘s resurgence may not stem its market share losses but definitely brings back volumes and margins to that business.

Across the shores, Coke is powered by the Indian Festive season too, though Intel suffers from emptying assembly lines in the December quarter as Atom cannot ramp up to the steep increase in mobile form factors and Sales . Intel alone has lost margins of close to 10-15% in the December quarter to a measly 55% as Apple also takes a rain check on global volumes.

India’s smaller stories on the other hand have the robustness to climb to bigger budgets in Advertising, marketing and promotions and bring the house down with digitization also , with a little official help hitting the required numbers in the metros and increaasing the known C&S market by almost 50% and accruing immediate subscription revenues of an additional 20% to the cable players and available new market share to Satellite players as well.

Retail and Aviation FDI maybe robust stories as well as they seem to have started off on a surer footing though at the infuriating pace India is well cordoned foff for in global investment books. Earnings reports continue to underwrite a consumer and healthcare stock boom in this rally as the banks continue on robust credt growth after the additional provisioning also destroyed the banknifty members except the private banks

Did you know that it would take $1.5 Tln from the Federal Government to take US Trsry interest rates back above 2%.The resulting weakness in the Dollar is also likely to continue thru 2013 and mean that the 105000 Marutis sold in October will come at a much steeper cost to the compan y int he coming months but it seems to be a season for the price hikes everyone had been stalling and Rupee’s strength might well recover all the margin Maruti needs while letting the sun rise in the east again over Japan

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2 thoughts on “India Morning Report: Yes, a resurgent festive season and the earnings were WOW!

  1. Pingback: India Morning Report: Here comes the Winter session..NDA, No Confidence, no market action? « A blog of blogs

  2. Pingback: India Morning Report: A tough act to follow! « A blog of blogs

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