'Rising Covid cases and localised lockdowns are being closely monitored.'

The contemporary problem with the BJP in Tamil Nadu is that it has been trying hard to package the DMK especially as anti-god and anti-Hinduism, and seeking it to link to Periyar and M Karunanidhi, and by extension to Stalin, the latter's son and successor to the party mantle. Their hope was to consolidate the perceived 'pro-god, pro-religion votes', which they saw returning to the fold post-MGR, post-Jayalalithaa. But no such substantial vote-bank existed even in Periyar's time, says N Sathiya Moorthy.

This time round, even 'petrol coupons' were reportedly distributed for those attending campaign rallies, especially those addressed by top leaders, cutting across party lines. If this owed to the rising cost of petrol and diesel -- which is a poll issue this time -- there were the customary coupons for 'quarter' (liquor bottle size) and non-vegetarian biryani. Some media reports claimed that some of these 'crowds' attended more than one political rally on the same day in the last week, and at times for rival political parties in adjoining constituencies or districts, says N Sathiya Moorthy.

However, despite Covid, Indian markets registered their best financial year performance in a decade, with the Sensex and Nifty50 rallying 68 per cent and 71 per cent, respectively, in FY21.

It does not stop here, though. According to field information, state ministers, AIADMK candidates and campaigners are asking BJP cadres accompanying them not to carry party flags at common rallies and also avoid their saffron shawl on those occasions. BJP cadres are also asked to stay out of the common campaign when it enters a minority-dominated areas, especially of Muslims, and re-join later, says N Sathiya Moorthy.

It looks as if competing political parties in Tamil Nadu have not grasped the full impact and import of a sizable section of voters possibly staying away from voting -- voters, supposedly with a predictable polling pattern -- owing to the Covid second wave and more so, how it could affect the outcome in individual constituencies and even booths, says N Sathiya Moorthy.

The Tamil Nadu Toddy Movement had met both Chief Minister Palaniswami and Stalin to seek their intervention in lifting the ban on toddy-tapping and had submitted petitions, but there it remained. So the matter is being taken to the people's court.

Back of the envelope calculations put government expense on each of the new schemes promised by the DMK and the AIADMK at tens of thousands of crores. But then, neither party has said how they are going to also address the mounting debt burden either, says N Sathiya Moorthy.

'If the EPS government falls, Sasikala will return. If EPS wins, he will become an indispensable leader and Sasikala will not be able to return.' T E Narasimhan reports.

'Your strike rate is very important when it comes to seat-sharing.'

Without strategising together, Jayalalithaa's successor, Chief Minister Edappadi K Palaniswami, and M Karunanidhi's son-cum-successor, M K Stalin, have used tough-talking on seat-sharing with allies, to replace charisma that they purportedly lacked, during the run-up to the assembly polls scheduled for April 6, says N Sathiya Moorthy.

'The last four years was not Dravidian rule, it was BJP rule by proxy.'

The sub-quota scheme may now lead to a ganging up of non-Vanniyars in individual constituencies against the Vanniyars just as in the past, such ganging up against SC-ST candidates was seen in the non-quota constituencies, says N Sathiya Moorthy.

Sasikala's declaration of staying away from politics does not necessarily have to mean that she was retiring for good. She is only taking time to evaluate the post-poll chances of hers before digging in again, if possible, says N Sathiya Moorthy.

For Prime Minister Narendra Modi to dig up the perceived past of the DMK rival, now under a new leader in M K Stalin, may not gel with the voters, both old and new. If they are still going to vote for the AIADMK-BJP combine, it will be for entirely different reasons, and despite Modi's poll speeches, says N Sathiya Moorthy.

India Inc's quarterly net profit reached a record high of Rs 1.64 trillion in the third quarter ended December 31, 2020, mainly due to gains from higher commodity prices and a big swing in banks' earnings. The combined net profit of 3,323 listed companies that have declared results so far was up 68.6 per cent year-on-year (YoY). In comparison, earnings were up six times (534 per cent) in the second quarter and 6.5 per cent in the corresponding period last year.

If Sasikala wants to stay in active politics, she will have to go to EPS crawling, reports Aditi Phadnis.

Check out some of the stocks that will react on the basis of their numbers in the near term.

Ahead of VK Sasikala's return to Tamil Nadu on February 8, there are some important questions facing her. One, does she carry electoral weight more now than her brainchild AMMK had in the 2019 LS polls? Two, can she retain or build upon the five per cent vote-share from that time? And finally, is there space for Sasikala to retrieve, first within the AIADMK and then across the state, says N Sathiya Moorthy.

RSS-aligned Bharatiya Mazdoor Sangh (BMS) on Monday expressed disappointment over the government's budget proposals with regard to divestment and foreign direct investment, especially in the insurance sector. The BMS, however, lauded the government for its current efforts on the massive vaccination programme, a special scheme for tea workers in West Bengal and Assam, labour oriented push on infrastructure projects in construction sector and development of five major fishing harbours viz. Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat as hubs for economic activities etc. On other Budget proposals, it said in a statement that "mixing the beautiful concept of Aatmanirbhar Bharat with FDI and disinvestment in the Union Budget is disappointing for the employees".

Market participants are hoping for a few tweaks on the taxation front which will encourage consumers and businesses to spend.

At 70, going by hospital records made public, most age and health-related arguments put out against super-star Rajinikanth's entry into politics, before he withdrew citing a 2016 kidney-transplant, hold good for Sasikala, too, says N Sathiya Moorthy.

Currently, TCS is India's second most valuable firm after Reliance Industries, which has a market cap of nearly Rs 12.9 trillion.

Buybacks tend to boost returns on equity and earnings per share (EPS) as the number of outstanding shares decreases. However, this has not translated into the performance of the stock price for many companies. Sundar Sethuraman reports.

This is first time in 25 years that a benchmark equity index in India is trading at a P/E multiple of 40x or higher.

Indian equities are no longer cheap vis-a-vis global markets, and only a short distance away from being the most expensive they have ever been.

From Chief Minister EK Palaniswami to Seeman to TTV Dhinakaran to elder brother M K Azhagiri, everyone's favourite target these days seems to the DMK chief Stalin, which is good news in an election year, but that doesn't mean he is going to sweep the polls, says N Sathiya Moorthy.

It looked as if the BJP was hoping to use Rajinikanth to press their seat-bargain with the AIADMK. Now with the Rajini bait gone, the question now is not how much the BJP would settle for, but how much the AIADMK would be ready to offer, notes N Sathiya Moorthy.

'The news about the new virus strain in the UK provided them with an opportunity to take money off the table.'

After several years of downgrades to the country's medium-term growth outlook, the estimates are likely to be upgraded now, Credit Suisse said in a report. The country's economy is showing signs of bottoming out, it said. According to the report, the consensus forecasts of GDP growth for FY2022 over FY2020 stopped falling after October 2020 (currently at (-) 1 per cent). Analysts at Credit Suisse expect these estimates to be revised upwards.

While analysts remains overweight on financials, property, discretionary, industrials and materials, they maintain a neutral stance on pharma, telecom and energy; and underweight on staples, utilities, and IT services.

In the past few years, MFs have emerged as significant institutional buyers, often offsetting the selling by FPIs.

'There will be significant political traction for him. But how much, we don't know yet'

There is positive correlation between crude oil prices and Indian equities and investors can expect more upside after the recent rally in Brent crude price.

UBS, Credit Suisse see emerging markets doing well next year, but expect India to underperform, given its rich valuations.

Second-line AIADMK leaders and cadres alike say that by starting the talks first with the BJP and committing the party to an alliance without discussing seat-sharing, the leadership might have commenced the coalition discourse at the wrong end. According to them, even 20 seats for the BJP may be too many, says N Sathiya Moorthy.

The brokerage believes the economic growth cycle is not fully priced in. It has revised upwards the earnings per share (EPS) estimate for Sensex.

The Tamil Nadu chief minister, who is in Pudukottai on an official visit to review anti-COVID-19 measures and development projects in the district told reporters that vaccination shall cover all sections of the society.

Higher education policy may be at the core of the Tamil Nadu assembly polls next May, with a potential to break the ties between the ruling AIADMK in the state and the BJP counterpart at the national level, says N Sathiya Moorthy.

Despite the large economic impact of the Covid-19 pandemic, the markets have recovered sharply even though the performance among individual stocks has been quite polarised.