India Morning Report: 6250 engages, but no higher levels in sight (Tuesday, continues)

The most important addition to the day’s manifestations is the 30-70 split for a 10% divestment in IOC as planned for ONGC and Oil India. That gives OIL India an extra large hole in its cash flow, the INR 35 bln it is required to cough up for IOC inordnately harsh according to them and likely the markets, making cues with the coming anti incumbency vote bearing in corporate and PSU minds ahead of June 2014. The other Khan did a great favor to Modi too, the PR machine working perfectly for BJP’s final attempt at the Crown

A great debate online on CNBC TV18 witnessing Pawan(Piyush) Goyal trying to squirm out of its anti progress stance as Opposition probably with the INR 90 Bln pending transfer fro CST coffers hanging big (Damocles’ sword, something) over the introdction of GST. Similar concerns plagued DTC and ensured the Cong  UPA government was one of the most unpopular regimes in the UPA2 mode.  AAP’s Vishwas is a great orator, with a Samachar plus clip going around very instructional for me to the fabric of a true politician, raised in a lower income/middle class family hitting it off with the masses.

YES Bank reports later in the afternoon, unlikely to have receded on its spotless record on Asset Qualities and with growth in Deposits returning in retail, probably would outperform expectations and we a great trade this afternoon/next week with the full impact of its having survived a crisis of NPA since 2011 and a crisis of Treasuries(and wholesale funding)  very much since August 2013 when the rally kicked in. Axis Bank reports tomorrow. The CNBC expectation set is 16% Topline and 11% PAT y-o-y. Indusind made a geat come to, moving the post earnings forward to today, his morning prognostications well received. (Reactive traders banking on a retaliation are well advised it isn’t mature for such predilections in the market, making India obtuse as it can’t already afford)

Kotak remains a good short even as Banks recover in a big results week promising a concurrent drop in Yields before the WPI report today. Glenmark has finally got the Volume breakout and is surging ahead. India Inc Earnings in Q3 are unlikely to be flat and the sentiment helped by low expectations as shorts ( helped along by Kotak Institutional) tried to break the market rally segments and BJP was again seen unlikely to make it. WPI scores should never have rided so high but the more than 25% fall in veggies will thnkfully also not be followed by other categories like Meat or Milk products and fruits where it started to correct the ‘clawback’ in price expectations

IDFC has returned back to the 100 mark ahead of results and outperformance by LIC Housing in the quarterly (subdued, but still) extravaganza is also certain. Bharti is leading the bull segment today and though it does not mean anything averse for ITC, the ITC scrip is unikely to get too much attention. Biocon seems to have finally come out for a good hit around as the Auto sector remains the Death of Miss Daisy(pucca middleware in sic! ‘uns)

Coal India jumped back 10% as a Dividend is announced after having remained below the IPO price for the public listing. Infy however is unlikely to break the 3650(3675) barrier as 16X is more than well discounted for the stock even if  MoST (CNBC TV18) estimates of 230 in FY15 are reduced to more conservative levels.

I missed the BofA and other foreign brokerage daily notifications today so if you logged in to your workstations, you could check for yourself. Axis Capital is playing for a mix and mash of Rural with the spine of Large Cap winners, to me that means trying to make HUL and ITC in the same lines?

Andhra Bank will definitely kick long for  dividend tomorrow but BOB announcements are due today

Aslso apolgoies to Aptart (Sandeep, F&O show::ETNow), I agree and have agreed with him always and he was bang n that it would be really stupid to short the markets at 6200, the rally from which however is even likely to peak out intra day..and India, where is the data!!

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