- The BJP performance in the by-polls in UP and Bihar was much worse than expected and that is likely to lead to some degree of panic in the markets. We could see the markets coming under pressure on Thursday.
- The weak WPI numbers actually raise a question mark over the producer pricing power and we have already seen that in PMI numbers. This could negatively impact the GDP. Markets may come under pressure on Thursday.
- FIIs were net sellers to the tune of Rs.(-259) crores while DFIs sold Rs.(-432) crore on Wednesday. The consistent selling by domestic sellers could be due to macro caution and also to provide for massive IPOs during the week.
- Markets across Asia and Europe came under pressure after the removal of US Secretary of State, Rex Tillerson in an arbitrary manner. The SGX Nifty is already under pressure and is likely to dip further in early trades.
- Havells latest pact with Hyundai Electricals will give it improved visibility in the contactors segment. Havells looks good for a 15-20% upside on a mix of summer sales and better consumer demand visibility.
- We have been reiterating about accumulating Tata Motors at around the Rs.350 level and with higher JLR numbers expected with a revival in growth, Tata Motors should bottom around these prices. Expect targets of 440-450 on the stock.
- Fertilizer stocks could be in the limelight in trade on Thursday as the urea subsidy has been extended by another 3 years. The subsidy will add to the government burden but urea stocks are likely to benefit.
- The UP and Bihar election results are likely to negatively impact the markets on Thursday and long traders will have to be cautious.
