TSUNAMO STRIKES

He covered a distance of almost 300,000 Km, attended more than 5000 rallies, of which more than 30 were mega rallies (as one report calls it) attended by close to 11 million people. And as if this wasn’t enough, he conducted 1350 3D hologram rallies, which reached out to 14 million people. A campaign of this size and stature by the Narendra Modi has permanently changed for good the way elections will be fought in future. It has naturally had its desired impact as well.

Th e Exit Polls which came out aft er the last phase of voting was over on the 12th of this month were a reinforcement of what we had predicted earlier. We had predicted the combine would win more than 300 seats (In our Issue dated April 21 - May 4) based on the most conservative estimate. Th e NDA (BJP and its allies) are now seen to be comfortably cruising towards a decisive victory. Every single poll conducted, is pitting the combine to occupy the treasury benches with the worst counting it at 249 and the best giving it 340 seats. Considering the kind of eff ort that Narendra Modi has put in over the past four months, this outcome should not be a surprise.

No other leader, especially one running for the Prime Minister’s seat has ever put in so much of eff ort to reach out to the electorate with his agenda. At least nothing of this sort is documented until now. A clear majority for the NDA is as good as given even as I key in these thoughts of mine (this editorial was written on Wednesday, 14th May, 2014 two days prior to actual counting and declaration of results). Th e whole nation will now gravitate towards the poll promises made by the NDA and Modi based on which the electorate has mandated them to be in power. Looking at the way this man has managed his home state, there is no doubt that he will be able to fulfi ll his promises to the national electorate.

Just to put things in perspective, there were three major points that the BJPs offi cial manifesto covered. Build a modern, prosperous and vibrant India, convert the country into a knowledge based society and economy, powered by experience, tools of technology and energy of the people and stay committed to this task and work relentlessly towards this goal. Another signifi cant initiative that Narendra Modi will surely undertake is the cleansing of the Ganga. Th ese broader policy statements encapsulate the spirit of growth as have been embodied by Modi’s eff orts so far. Th e time for execution has come and the optimism about the success of it is already in the air.

Look at the one sided move that the markets have witnessed ever since elections were declared almost four months back. Th e Modi impact has only strengthened over time. The Sensex has moved almost 15 per cent between February and May this year. In fact, even as we were getting closer to D-day, the momentum only kept on rising. Such is the optimism that the Modi wave has set in that a 25000 close on the Sensex not only looked inevitable but all set to continue beyond that. Foreigners (FIIs) have already endorsed the positive impact of the Modi wave. Their investment pattern speaks a lot about why the Indian markets are all poised to scale newer heights going forward. Th at is proof enough of what investors ought to expect going forward.

While the markets are getting ecstatic at the results of the elections, some very important developments over the past month or so have missed the limelight. One such is the arrest of the high profile ‘Exchange Magnate’ Jignesh Shah. The story of Shah is a very remarkable one. It is probably one of the most fascinating stories of quick success and an even quicker downfall witnessed on the Indian business scene in recent times. Another testimony to cement the theory that riches are rarely made by honest and hard working people in this country.Our cover story takes you through the ups, downs, making and unmaking of this over-ambitious entrepreneur, which has eventually led him behind bars.

Among our other stories is the El Nino Mystery that impacts agriculture at times and this could result in a volatile situation caused by the threat of rising infl ation. We yet continue to advise our readers to book profi t whilst the party is on and not stretch their luck beyond the results. Cash in the bank at this stage will provide all our readers with the ability to sustain the anxiety during counting and will also provide an opportunity to enter the markets when they correct. A correction is eminent and thus the markets will provide an opportunity for a re-entry. Our research team has been able to identify some counters which are undervalued and will deliver returns inspite of the infl ated valuations. Th is time our Choice Scrip is two-wheeler major TVS Motor Company which has witnessed better monthly sales over a period of timecompared to its peers. With a focus on improving product mix and margins the company is well poised to perform better going forward.

The Low Priced Scrip for this issue is DCB Bank. Th is Bank is on an expansion spree and hence poised for a growth going forward. With considerable improvement in the Gross NPA levels the bank is likely to show better performance going forward. Th is time we have analysed JustDial. Th e scrip witnessed signifi cant fall in its prices on the bourses. However, the fi nancial performance of the company has been on the better side for March 2014. We take a look whether it makes sense to invest in the company at current levels.Do email us your comments and suggestions on comment@dsij.in