India Morning Report: Markets to consolidate 8500 levels into a ‘thing’ till the next break

The new Infosys starts the week below 2000 even as the Nifty tracks downward from the weekend levels and keeps its nose above 8500, Hero Honda paying for an intemperate rally as ITC hits 360 levels while ICICI Bank is up to 1480 levels. We have probably already mentioned we worry about the indiscriminate fillip to Maruti at a grade or two below investment grade at just 100k cars a month

The Sensex is stil below 29k at its highest away from the 30,000 peaks which will be reached at the firsat few evidenced statistics of the Recovery, inflows having stablised to a slow trot and also waiting without further profit taking and Coal and Power, Highway and other infrastructure ministries ( incl Railways) seem to be activated to the imperatives of garnering quick financial closure for stalled projects, again only IDFC a quality listing in the area with leveraging having destroyed GMR , Reliance Capital and JP associates listings. Any equity loading of infrastructure projects will definitely suffer from investors’ impatience for return on their risk capital and long term debt is more likely thru shadow banking channels than conventional bank loans or traditional risk equity

Bank acquisitions also seem a mile away and the energy stocks’ rally has been stunted by public ‘profiteering’ to finance extraneous fiscal deficits in new taxes even as demand hits a new level on lower prices. Really stock rallies on a 267 crore order (SPML Infra) is not a n opportune way for investorsor even speculators with many market accidents in the recent and not so recent past testimony to fall outs from such orders including our polaroid driving licence contracts and others while the Bangalore and Delhi metro seem to be the only good examples in EPC

 

 

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