India Morning Report: Markets swoon a little “khaike pan Benaras wala”

BJP’s girl like posturing in Varanasi points to a likely tear in the campaign rubric esp for us as they seem to follow Congress into a similar road show to further show weakness. Likely unaffected by the continuing media sentiment favoring them, BJP and the markets have a reason for the sudden lack in confidence. However that may be, equities tumble midweek should engender a big camaign inside the markets for high quality stocks and those hanging on to YES, IDFC, Bharti, ITC and even Bajaj Auto and Power NBFCs may benefit. The last , of course will actually reduce back to 180-200 levels for REC and similarly for PFC but most other stocks and even ICICI Bank should not lose much if the correction continues.

Modi’s suddenly sounding like  a screeching record, and if there is a next time it will be a broken record ( Call it too many stimuli, but I am definitely not mixing metaphors there) Avoiding further political commentary however interesting it might be. Also before we move on to real matters, this again would be inopportune evidencing of the Political risk India plays into the FIIs’ daily routines.

Markets will eventually adopt a wait and watch at slightly lower levels and providde opportunities to other investors to enter at slightly lower levels though as mentioned above stock specific levels are more or less done except in new picks or recent darlings like M&M, Kotak and Reliance. Energy stocks are unaffected by this rally. We will recommend buying at all breakdowns till end June across May, the counting days and government formation, awaiting markets to rejoice from July on more fundamental recovery and comebacks of the Indian economy. Jignesh Shah’s arrest was a matter of course iand the speed is welcome in India as well as we finally get the chance to unravel detailes of the transactions allowed by the MD. Glenmark reports today with NDTV, GIC Housing , and Talwalkars also important reports to follow

Lupin Labs managed to improve margins to 28.6% (and the net actually grew 36%) but that seems a too little too late, Magma fincorp disapppointed along expected lines. Syndicate Bank could not have done worse ina quarter when others like Canara Bank have posted due jumps on completing recovery but media stocks are doing well with Hindustan reporting a 20% jump. I also hope for some good analysis posted from Powerplay, a virtual stock exchange pricing our leaders , a part of the CNBC TV18 initiatives

In unlisted business ecommerce carts continue to crowd PE minds in big India even as Amazon (and flipkart) gets ready to crowd out the existing lot while Starbucks (listed as Tata Global in JV in India) stays a subdued 100-200 stores this whole year. They would however likely serve good coffee to Atletico de Kolkatta as Sourav runs ahead of superstar KKR in the sports leagues for just a little bit till KKR come back in the second half of IPL 7.

..and a late hat tip to Brian Callahan for inventing the ticker in 1867(nseindia.com)

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