It is this manufacturing hub which will provide jobs , markets and improve the living standards of the masses. It sure sends a message which is loud and clear and one is sure that industry and the world will sit up and notice.
Markets saw the Nifty make yet another life-time high while the Sensex did not; it's a matter of time before it does. Economic indicators seem to suggest that inflation is now coming under control .
Similarly, manufacturing is undergoing a major revival and the investment climate and the sentiment have improved. The Monsoon Session of Parliament has ended and the Opposition did not allow the Insurance Bill to pass . Many more Bills would be introduced in the Winter Session.
The government has a big unfinished agenda. The Prime Minister slated to visit the US in September and one can be sure that both countries have a host of issues to be discussed and finalised. Tata Motors, led by Jaguar Land Rover (JLR), produced a brilliant set of numbers with the net profit increasing from `1,726 crore to `5,398 crore for the quarter ended June.
A big contributor to this rise was increasing sales of JLR cars in China, where the company's sales accounted for 28 per cent against 24 per cent in the yearago period. The scrip of Tata Motors gained to close at 12 per cent higher. The Syndicate Bank case clearly shows that political patronage was available to the players involved. In a mocking statement to the financial community, the management of Bhushan Steel (one of the companies involved in the Syndicate Bank scam) will seek shareholders' approval to raise $1 billion from capital markets.
The questions is who would be willing to invest in a company whose vicechairman is behind bars, the share price has plunged to `160 from `400-a fall of 60 per cent- and its promoter holding being invoked by lenders. This drama unfolding is indicative of the damage that over-leveraged companies bring unto themselves.
Foreign institutional investors (FII) maintained their bullish stance and bought equity worth `2,150 crore in the four trading days last week while domestic institutions chipped in with purchases of `550 crore. The result season is over and the most pleasant surprise is the stellar performance by oil marketing companies.
They have all reported profits for the quarter, which indicates that the under-recovery has reduced substantially. With petrol at market prices and diesel almost also at the same level, the shortfall is restricted to kerosene and LPG, which is partly subsidised by the oil producing companies. This turn in profits has a double benefit for the oil companies as they will be able to repay the loans taken to fund losses.
The week ahead will be largely driven by global news flow amid geopolitical concerns in Iraq and Ukraine, and FII activity. There is no reason to believe that the markets will stop their buoyant mood. Buy selectively.
(The writer is an investment analyst)