i Develop Stocks Advisory

Never change the Challange Market collapsed at the end of the day because bears wanted to become heavy and close the market below the 200 dma. They succeeded and therefore congratulations. For doing this they had to take support of spreading dirty market rumour that LEFT is withdrawing support. The gravity of circulation of rumour was so strong that LEFT had to clarify this on wire channel. For me it is only academic. Bush has to go in next few months and the senate can’t consider the same before Bush is there. This means Nuke deal will have a life beyond both the Govts and therefore it could be a non event for the market. Yet Nuke deal will provide reason to create volatility. Of course, for the ruling party N deal will provide an opportunity to shift the burden to the left for support withdrawal. Chances are very bright that LEFT may not support N deal as they are doing since last 2 years at the same time they will not withdraw support leaving a big question mark to everybody. The election need to be won on merits and not on gimmicks. So far, at state levels it seems the ruling party has lost its mandate in favour of opposition. LEFT has no capacity to come on its own. BJP do not have good leadership qualities like ATALJI and hence clean sweep is impossible. The only possible scenario which could immerge is HUNG parliament once again with change of equations. If LEFT gets the same vote banks then the current scenario may repeat. If LEFT fails on this front then the ruling party may search for another coalition such as S P. This could be by default. Considering all this, market could be much neutral to political scenario in India and only knee jerk reactions could take place when the events happen. This is not because uncertainty is created or could be created but simply because volatility is the real instrument of operators for their bread and butter. In fact, this the reason market recovered from 4700 to 5280 and then again corrected and now improving. Where you get scared with volatility market drivers love that. You sell they buy and when you buy they sell….a cool jobbing spread of 15 to 20% which is more than entire years returns of FII and MF. Did anybody believe that Sandur will report this kind of nos…? I had predicted Rs 235 crs net for 09. Management has now gone on record saying that the top line will be Rs 1200 crs and net will be Rs 600 crs. With Rs 600 crs net Sandur has to touch Rs 5000 in coming 2 years. Nobody can take away I DEVELOP credit from the Sandur find. It was exclusive I DEVELOP Research. So also Minda. How many have Minda now…..? Minda is now entering the elite club where ownership is very difficult. With acquisitions of Rs 3000 crs Minda could touch Rs 4000 crs top line in coming 2 to 3 years which will give sheer size to market players. Accurate Transformer and Panyam too belong to these categories. You will realise this only when Panyam become Rs 1000. Hospital is the hottest sector right now. Every gr is entering hospital. I think in next 5 years India will have so many hospitals that they will have to start searching for patients in rural India like telecom has gone into places. Being capital intensive industry, there will be entry barriers. Only very strong grs like, Sterlite, RIL, Mallaya etc will be able to enter this sector. Even a small 200 bed hospital could cost nothing less than 250 crs. India has surplus medical talent and with hospital boon and FDI in place you can dream mass services in hospitals too. Can you dream to see getting bye pass surgery at Rs 50000…? In Pune already few Docs are doing at Rs 60 to 75 K and better than its counterparts in Mumbai. Just imagine open heart surgery at 2000 USD which could be even less than cost of life insurance. With insurance spreading its wing most dynamically I think one must bet on hospitals. PTL is my best bet in this segment because its hospital is for 500 bed which is countable and it’s backed by very strong promoters like Mr Rounak Singh of Apollo Tyre. We will be seeing lot of M & A in this segment. Change is the nature of life. Challenge is the aim of the life. Challenge the changes but never change the challenge.