The FDI in multi brand retail is up for political tests thru this week as large bandhs and demonstrations are calendarised nationally. Political mileage for the opposition in this is likely to be double edged and lose them state constituencies later if not right now. 

Land Reform and other non environmental agenda items apart, India Inc will now have to perform and GDP growth projections continue to stabilise now to a secular 5.5% level across planners, India research desks and local banks and brokerages. 

Banks remain highly positive and ICICIBANK (Chanda Kochchar on ETNOW  remains strong on domestic personal and commercial growth while International is flat. BANKNIFTY had an even bigger fillip because AXISBANK remains a good bet and SBI of course a winner on reduced CRR. HDFCBANK is another example of a defensive caught in a long only sector, unwinding in the stock causing it some heartburn when competitor ICICIBANK races ahead. 

IDFC and JPASSOCIAT could see big long moves if the growth trends are indeed bottomed out and moneys keep flowing which could take them and the sector to 2-3 times the valuation but CONSTRUCTION is not a good pick esp kingmaker DLF which has jumped ont he FDI announcements with CREDAI pitching in on the likely growth in the share of retail spaces from an abysmal 5%  

Technically the charts are unlikely to thro up the new winners at this stage. 

Posted via email from The India Investment Post