Markets have taken us to heart and definitely like our analysis though with the inevitable liquidity issues and the affectation of a surprise as traders recover strength and get into a new orbit at 8350 levels
We were definitely wrong about the Banknifty’s capacity to move north in the 2005-2010 period and may have underestimated its power again as the Banknifty powers up the banking sector on good results. As a result the ecxpected rerating of PSU banks down remains undone, after the traders having waited out the entire advance from July 2013 to Modi’s elections and the PSU banks continue back for the last secular run of the rally to probably an overpriced momentume trade beyond 8750 levels but definitely not overheated at any level below 9000
IDFC trades higher again unexpectedly silent before Diwali and waiting out its reorganisation but apparently keeping its constituency apart form our followers also intact. They had bad results to show because of the infra slowdown for these two years
This could however also be only as the markets jettison auto salesbefore the recovery scycle gains strength and that means the markets would have a unique direction indeed in the next two mmonths as the Auto shares have a vertical over pricing gap from their election day levels whence they ran ahead on speculative interest.