- The Nifty closed on Friday above the 10,800 mark but could face pressure on Monday ahead of the Karnataka counting day. The markets would be more worried if the BJP puts up a poor performance in Karnataka.
- With Malaysia deciding to pull out of the GST within 100 days, what India does next may be interesting to watch. GST has been picking up but any slowdown in implementation would be negative for markets.
- FIIs were net sellers to the tune of Rs.(-325) crores while DFIs bought Rs.1163 crore on Friday. Domestic flows are continuing at a robust rate and that is holding up the markets for now. FII selling could be the key driver.
- Global markets were flat to mixed on Friday and Asia opened mixed on Monday. The key to Indian markets will be the cues coming from Karnataka and the SGX Nifty is showing early signs of pressure at higher levels.
- We expect PSBs to come under pressure on Monday after the RBI banned Dena Bank from fresh lending. This pressure could be seen in most banks under the PCA like OBC, UCO Bank and Dena Bank.
- We expect Hindustan Unilever to announce another stellar set of results this quarter and further outperformance going ahead. One can look to accumulate the stock with 20% upside targets from current market levels.
- Our joker in the pack could be Bharti Airtel. With a sharp rebound in its Africa business and the proposed IPO, the company could move towards substantial deleveraging in the coming years. Buy at Rs.410 for targets of Rs.450.
- The undertone of the market appears to be positive but the key could be how the Karnataka assembly polls pan out.
