- While the global cues in the form of a stronger dollar and weak EM currencies continue, the rupee could breach the 71/$ mark decisively on Monday, unless the RBI really intervenes in a big way. That looks unlikely at this point of time.
- The big cue for Monday will be the positive 8.2% rise in GDP growth recorded in the first quarter. This could be all the more positive with a sharp revival of agri growth to 5.3% and manufacturing growth back at 13.5%
- FIIs were net sellers to the tune of Rs.(-213) crores while DFIs bought Rs.172 crore on Friday. Volumes were quite heavy in both segments indicating clear signs of block deals and portfolio shifts among investors.
- Markets were sharply down in Europe by more than 1% even as Asia is showing signs of weakness on Monday. But the real story for India could be the GDP data, which explains why the SGX Nifty is still in the positive.
- We had recommended UPL in the past post their acquisition in the US and expect the stock to scale up gradually to the 750 mark. One can still look to buy the stock with a 1-month perspective.
- We have been talking about Tata Motors for quite some time. With a sharp growth in domestic auto sales numbers reported by Tata Motors in August, the company is a good bet at around the Rs.265 mark with targets of Rs.300 in one month.
- With the gradual revival in the sentiments of the pharma companies and the dollar advantage, Cadilla Healthcare at Rs.403 is a good bet for a short term target of Rs.450 on the stock within one quarter.
- GDP numbers will play a major role in market sentiments today although the real story will be in the way the INR pans out during the day.
