- The Nifty continues to be jittery because the trade war between the US and China officially triggers off on 6th July midnight. Counter tariffs to the tune of nearly $100 billion worth of goods are expected. That will mean pressure on the INR.
- Infosys corrected sharply ahead of the quarterly results that will be announced next Friday. Markets are apprehensive that the company could again warn on guidance and were cautious after the sharp rally.
- FIIs were net sellers to the tune of Rs.(-159) crores while DFIs sold Rs.(-297) crore on Thursday. It is feared that a trade war could lead to rapid selling from most of the emerging markets, both in equity and in debt.
- While the US and Asia was buoyant on Thursday, most Asian markets were under pressure on fears of a currency run in the event of a trade war. The SGX Nifty is also under considerable pressure at this point of time.
- The pressure on the rupee could continue and that will be a key factor making IT and pharma stocks attractive. However, IT does look a tad fully priced and we see more value in pharma stocks like Lupin, Aurobindo and Glenmark at these levels.
- After the sharp correction in Tata Motors post the JLR warning, the stock appears to have bottomed out. At around the Rs.260 mark, the stock looks fairly undervalued and one can consider investing seriously in the counter.
- Titan could be another stock for value picking. Despite the sales warning given by the company management, the stock is already down by 15% from its peak price and any growth concerns are factored in.
- The INR is still vulnerable and that, along with crude oil prices, will continue to drive the stock markets in the near future.
