India Morning Report: Sun Pharma finally breaks stride (ha! Stride Arcolabs wins)

Sun Pharma is snared into the last leg of mega short trades with Axis Bank an easy six pick this week and next. ICICI Bank has stabilised at 870 and after the Consumer stocks (a couple of hours before Pharma) the Pharma crowd gives up its measures of price vaulted in the continuing over-ownership by 2 or 3 ‘undeserved’ bubble notches by FIIs as they certify to their limited export potential and would be pruned as well. Chennai express could find some financial implications is probably what you would think as we continue to provide a 1005 demystified almost paperless review of the trends both in fundamentals and technicals. However, as far a s we are concerned this is just how the cow will be seen by the robot and we will continue this one off everyday before or after we turn to our day’s work probably in the same business with other banks and academia.

REC (and other infra (Power) NBFCs ) has ticked closer to its 13 levels that should also hold. You can probably safely short that one still from 150(wednesday morning) to 133 levels. 2009 they had established new coasting at these levels for the market and thus they could retain their primacy in leading the market trend horizontally or North deciding the times in between till the next rally

LNG/LPG companies again remain hot commodities with Gas prices signed up to move up by 100-150% by 2015 and following them energy companies, the OMCs could well settle down if WTI balances out new price pressures from OPEC as it increases export volumes

Banks would have no difficulty increasing spreads but may be hidden gems before the broader Economy realises that but nothing to beat bank stocks on a fundamental basis at this point. Outsourcing stocks start the unstemming bleeding today as they are also not contributing to the CAD deficit reduction as the first few investors had ensured in the 2004-2009 phase of its heady growth.

We dealmakers have also noted with interest that despite the hoopla around IPL

This diagram illustrates the Private Equity J-...

This diagram illustrates the Private Equity J-curve in which net cash outlays in early years are outstripped by cash inflows in the later years (Photo credit: Wikipedia)

dying down more corporate owned sports businesses are in the fray than ever before and may attempt India’s unique public financing iPO model even as Private Equity adjusts to the new view of the Economy, once again showing its inflexibility and habituated method of creating big, wide potholes with transplanted models and outlooks that have again failed in e Commerce and any remaining brick and mortar models. Private equity may however, finally be able to make the transformation and invest in local analysts not just for salary expenses but for more akin modeling of the unique parameters. It is a long uphill struggle

Not many private banks were timed to and tuned into HTM portfolios despite the threats to rupee and thus ill be blamed for the losses that happen on their investment folios this quarter. China’s increasing trade surplus similarly does not match its eigenvalues of resuscitating domestic consumption for those waiting for the first early signs from the same since 2008 ut consumer demand there seems more robust than India esp for engendering larger investments

I was also hoping Hero Moto would return to more realistic levels as any motivation for it to be the star of india should be also seen as continuing over-ownership by 2 or 3 ‘undeserved’ bubble notches . Hero tracing below 1700 could very well be the last of the vertical shorts in this market when that move is played out hopefully over next week itself

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5 thoughts on “India Morning Report: Sun Pharma finally breaks stride (ha! Stride Arcolabs wins)

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