morning thoughts...

The markets stayed in a consolidation mode as expected and is resting on support levels and can bounce from cushion levels.

The restructured loan books of PSU banks are sufficient indicators of poor credit quality of Indian companies. The fact that companies with leverage are having to service loans at steep rates has added to their woes. Companies in the infrastructure and utilities space have also to contend with unfinished and stuck up projects. 
However, what we would beg to disagree with is the claim that India's credit risk is higher than other regions in Asia, Europe and the US. Europe and American companies are in fact living out of cheap funds. And they run the risk of going landing into financial trouble the minute rates start rising. In Asia too, the quality of corporate credit in Japan and China are no better. So, it is true that India needs to pull up its socks and bring PSU banks out of the restructured loans mess. However, it is a relief that unlike the US, Europe and China, which claim ignorance, we at least acknowledge the magnitude of the problem. And that itself will keep India's financial system relatively safe. 

Yesteday's calls sent

Triple bumper Ranbaxy 600 pa , idfc 150 ca doubled

Jackpot option - sun pharma 800 pa tripled

Escorts rose 15 rs , beml rose 25 rs

Fii Selan exploration gave 60 rs

Advance nifty yields 650 points and bank nifty 1200 points in 19 days