Indian Markets: Overpriced. Only Buy in PSU Oil Counters

1. Indian Markets seem overpriced for the near term, but strong liquidity inflows can provide cushion (for now).

2. The only key names in BUY Zone are Oil PSU counters.
In relative strength IOC > HPCL > BPCL
BPCL is most expensive, probably because of it's Mosambique oil find. However, it is also the most vulnerable due to higher relative component of LPG Cylinder sales. These will be most price inelastic.

So, BUY on IOC.
HOLD on anything else, no need to sell though.

3. BBL(Bharat Bijlee) looking interesting among mid-caps. Transformers should be a growth area with growth in power sector. Other +ve's: Strong dividend record, reasonably priced and embedded value of Siemens shares close to 20% of BBL value.

4. Refineries could be a +ve too, given rise in GRM's lately, but no research done yet.