What follows is a 5 minute (okay, 6 minute) video on some of the data I wanted to blog about but decided I’d talk about it instead. It’s a format I call "Deepak Shenoy Talks”. I know it’s unprofessional and does not come across as the fantastic commercials you might see on TV nowadays, but do watch. And I very much appreciate your comments and feedback.
Things I spoke about:
- Bank Credit’s reached 16.75% and is heating up.
- Inflation’s touched 14.5% at the primary articles level (weekly) and is likely to be high because of the low base effect – last year, April started a 12 week deflation cycle. Higher crude prices this year will add to the headline inflation figure.
- India’s market cap to GDP has traditionally been below 100% – or the total market cap of the stocks listed is less than the total GDP of the country. It went above 100% in Oct 2007 till April 2008, when there was a big crash; we went all the way down to 46% of GDP. And now we’re at that point again – 100% of GDP.
- Two charts look good – HiTech Plastics made a big upmove to Rs. 110 on some incredible volume today, on news they had started production at a new plant. Hero Honda is riding the upper bollinger band and is really really moving – with a Rs. 80 dividend tomorrow it will see an apparent correction of sorts, but it has been a 250% move since last year.
