India Morning Report: A gentle let down on Policy day

Though of course, we miss going thru our specific brand of analyses, we will not be presenting a more detailed article on why Guv Rajan would not be presenting a rate cut and meanwhile also not able to educate the market sentiment on how the CEA Arvind Subramaniam will be effecting his first seminal recommendations on India’s way forward.

While IDFC and YES remain at investible levels SBI and ICICI Bank have responded to the “put me down gently” sentiment in the markets with the Banknifty watching the way down at 18500 levels higher by 20% from October series level a month ago. The sensex is likely down another couple of 100 points today after the policy release and while the hedged positive move will remain in HDFC Bank, Axis and SBI will not be much affected because of the change in valuation on the two candidates, while Kotak, having speculated much on its strongly speculative bid to buy another dead bank, will likely be the spearhead of a good short strategy to test waters this week, while the Nifty prepares ahead to make a comeback next week in Energy stocks and mid cap Pharma investments moving up on investor accumulation. Bharti and ITC join the cyclicals in correcting back to 350 levels whence another secular rally leg will be in play.

One wonders whether the Winter session has any rumors in store that can be absorbed by the markets today itself, or likely pressure on shorts can be built upon consolidating the judicial and legislative headline output in media, from the IPL and Dhoni’s way out to probably the white elephant that made us miss the taxt treaty with more downstream information on tax offenders

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