Urgently required – rare M+ blood group!

When Santa comes to town this weekend, I would imagine we would not recognize him, since he wears red suit and there is blood all over the street and in news and in the mood. So maybe he should come down to India at least in a green suit; for a change.

The markets looks like have caught a severe form of e-coli virus infection and is dehydrating everyday. We go from one level to another and for straight sessions in December 2011 we are down to a level where every one is looking like lost appetite to buy anything. Blue chip have transformed into Blue cheaps. How else would you imagine, LT @ 975 (triple digits) and lesser known construction companies such as HCC @ 16INR. With prices so cheap there is no need to look at the mid/small cap names at all. BTW, who wants to look at names which are falling like 8-10% on a single day.

For the entire 2011 to date; we are now down around 26% and that is amongst the worst performing asset class across Asia.

Today’s fall was worrisome for couple of points; nothing new happened however, Asia was meaningfully up and so is EU region despite all the crap that is going on. This then looks like the world telling us that the Indian economy is not worth the attractive opportunity the way insiders present it to be. Could be true but only partly, according to me. My sense is that at some point the same points such as regions that have done well don’t deserve to be rated that much higher and there is great value in India. This argument coming into play is likely to become a reality sooner than later if we continue to head south.

For the moment, the market requires blood, urgently and as we all know, M+ is a rare group only with a few people, excluding all politicians.