India Morning Report: Nah, the expiry, did not get that correction again

The Expiry draws to a close and though last minute arbitrage is better possible with some quick cuts on the indices till Thursday, today is likely to see better traction for the entrenched long term investors , who as of now do not seem to be sensitive to the admittedly limited down moves of the index. That means the better auto sales data expected towards the end of the week (from tomorrow) is likely to hold sway and the indices will probably close the series above 7700 or not too far below the 7700 mark keeping the battle limited to small touches on the 7650 line as the indices come back in the new series on indubitably better economic data. The monsoon has recovered from 45% below normal to 25% below normal and though the mark is still sore and red enough worth a scream or too, markets are likely to bite more on the positive side

Bharti and ITC posted good results. ITC as usual taking Q! out with a double digit growth in FMCG volumes to INR 61 Bln levels, one can assume to be the new minimum for FMCG sales of the behemoth. The tobacco pdt sales are also firm at a 64% margin, withstanding a bout of heavy price increases.

Bharti’s production seemed good on ARPU though  deeper analysis of its India vs Africa business is impossible at the moment

I can still look at YES, IDFC and ICICI Bank taking off together on the plus side, with the disappointment on L&T was easy wenough to see, with the PSU turnkey producer continuing to focus on its improving PAT margins and hopes to complete the turnaround on its order books in the next two quarters.

Domestic Pharma remains a great profit making opportunity and dealmakers are sure to follow on the good ongoing trend in the bourses.

In unlisted business, Flipkart seems to have won a round or two against Amazon with the launch of a quasi Prime service and new funding though at $7 Bln funding.

Markets will stabilise above 7700 levels only.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s