India Morning Report: Another “Happy Thursday!” for the markets

Bajaj Auto was the biggest story as it expanded margins more than 1.5% to above 21%, putting behind shallow stories of losing share that have mostly affected Hero Motocorp and changed the Automobiles trade as four-wheelers dulled down in Q2 and Q3 to kill the recovery India Inc was to prescribe for the Economy.(we promised to shutout the debt deal bingo and we did, the compromise anemic as ever and the Taper posted now for post Q2 2014)

Mindtree also screeched up the noise with better margins but the coming Holiday Season quarter is likely to ascribe a sea change between Bajaj Auto and Mindtree in sales and bottomline performance

HCL Tech however completely the IT revival story with a big bang jump in top and bottomline and keeps the defensives on the speculative list for the rest of Earnings season, l likely to jump further from the 60% rise on the bourses year to date(Udate: HCLT really milked the Rupee for a EBIT nearing 24%)

Banks will remain dull and Indusind may indeed be proscribed, but with not many stuck on to bank scrips any short in banking stocks is likely to be not more than pennies

In case investors are kept away from the facts yet, most of the good companies have performed in duble digit increases in topline and profits have been strong, likely to not just outperform but fuel the rally. Bajaj Auto broke the $1 Bln quarter mark nearly and will do so comprehensively in the next two quarters itself with a INR 51 Bln topline and gross proifts at 21% plus margins

Mindtree’s $124 mln and toughening of pipelines to nearly $150 mln is good as they hibernate for the winter, Infy having started off with 5 large deal wins and TCS getting back into New Jersey’s Big Pharma offices plus another Bank/FI even as Data Centers popped up on everyone’s radars especially in Europe and HCL’s growth in the segment will be good to follow for other IT satraps If HCL does not grow the IMS business (Data Centers and Helpdesk) it is likely another stumble ahead for Indian substitution services

DCB and Heidelberg both matched up to a INR  3 Bln topline and have already been traded for coming out of a hole, in terms of performance

The Banknifty in fact is due for a buy in at 10200 levels with great bank results leading the way for India having proved itself in the quarter and the Rupee gets blamed for the expanding margins, taking the currency down again to 63 levels before it comes back and yields stabilise lower after the policy turn. MSF rates will continue lower to 8.5% mark eventually if Rajan does stick to the recommended 7.50% repo rates level and does not increase it again for the 6.5% bears in wPI

Hindi on whimsy: Akasmat(Sudden, equally apt in both up and down moves); utavala na hona(to not look too eager)

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6 thoughts on “India Morning Report: Another “Happy Thursday!” for the markets

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