Sugar Sweet…no diabetes in sight (Green Light)…..Telecom Voice Breaking (Red Light)…..IT dropping with the Dollar (Orange Light)

The Trafiic Signals are clearly at work in these Three Sectors….It’s Green for Sugar,Red for Telecom and Orange for IT

Sugar Stocks are at just 3 Million tonnes…that’s going to last  a month and a half…India consumes 2 million tonnes a month….Last year we produced a record low ! of below 15 million tonnes and had to import…This year our production will be marginally higher at 16 million…we will yet have to import…half of the imports have gone through…half remain….so sugar prices will have to come to import parity and then remain in the Rs 32 to Rs 35  per kilo range for the coming year….if not more !….the sector is on a roll

Telecom is facing Intense competition….margins are going to drop significantly as cheaper and cheaper schemes get announced…great for the consumer…not so great for the Company…and companies hope to make it up by increased volumes….there remains a big question mark on this strategy…..Bharti ,Rel Com scrip prices are justifiably dropping

IT….Rupee to the US Dollar was Rs 52…now Rs 48…expected Rs 42 in the next six months….so expect continuing dollar depreciation to impact IT Scrips…Tomorrow Infosys begins the Q2 Earnings Announcement Season….let’s see what their Gurus say

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