Though the market watchers are almost thirsty for a correction in the new series, habituated to aa trading range being established in a market that has more than INR 10 T in daily volumes on a good day and INR 4 tln in turnover including derivative volumes almost everyday. The Nifty Call interest has moved from 6000 to 6100 but is short interest and is safe enough as the markets do not look hungry for a move beyond 6100. However, the market is holding and we stick to our ‘call’ of 6000 being an almost distant minimum for the series as big ticket Results from Bharti, IDFC and BHEL follow ICICI Bank, Satyam and Bharti Infratel’s good showings yesterday.
Profit taking has almost ticked up to normal levels with the markets taking the profit taking in its stride in Private Banks and other blue chips including ITC and Glenmark Pharm. IDFC could start a new move today and Ambani cos. follow after their result surge backed down by Monday. ICICI Bank could also start back after the immediate discounting of its par results as its above par situation catches on and markets decide that corrected levels are unlikely to cede new ground. India VIX remains subdued making it more possible each passing trading day that a new high will be made this year.
Jet is likely to sign the dotted line with Etihad this week and UAE’s #3 carrier look to fast recouping of market shares from leaders post consolidation with Jet in terms of synergistic operations
The surging CPI data to 14% and the slowdown in Consumer staples including QSR and snack foods highlighted in ET forget to note that India consumers have easily digested the over 2000 pizza and other QSR restaurants and the growing market sustained by Tier 2 towns despite KFC and Pizza hut;’s earlier failures to expand the category in India. Also optimistic projections in Real Estate industry highlighting the record number of new launches though pointing to over capacity int he future point to a good 2013 with a record 500k new homes being handed over to retail customers this year.
The Rupee is also likely to capitalise on Dollar’s misfortunes without hurting Exporters as Euro and Yen coast to new records after an unprecedented contraction in GDP was reported in the US bringing the year’s growth down to 2%
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