- The Nifty has gained nearly 600 points in the last 4 weeks even as crude oil prices have fallen by 24% in a little over a month. This has resulted in the rupee emerging stronger and reducing the pressure on the current account deficit.
- The dilution of the Iranian sanctions and the diminishing prospects of an all-out trade war have again given hope to Indian markets. If the rupee is able to hold around current levels, then foreign inflows may be back into India.
- FIIs were net buyers to the tune of Rs.2043 crores while DFIs sold Rs. (-166) crore on Tuesday. Nearly Rs.1400 crore out of this was accounted for by Aberdeen, Government of Singapore and Nomura buying ING’s stake in Kotak Bank.
- While Europe continues to be tentative ahead of the BREXIT deal, the US markets showed positive tidings led by NASDAQ stocks. Asia also rejoiced that the trade wars may not get worst. SGX Nifty is up by nearly 1% in late trades.
- One must look to buy consumer stocks with the focus on socks like Titan, Hindustan Unilever and Britannia at current prices. These could benefit from the rural story also. Target upsides of 25-30% on consumer stocks in the next one year.
- Long-term investors must now bet on DLF with the company planning to go zero debt by March 2019. Also, the end of the NBFC crisis should take off some of the pall surrounding realty stocks. Accumulate gradually for a year.
- After the sharp 30% correction from higher levels, Adani Ports and SEZ is a good buy around the Rs.335 mark for targets of Rs.400 in the next one quarter. Mundra port traffic is still likely to see record volumes.
- Markets may be a little tentative on Friday being the last day of the trading week. However, the undertone seems to have shifted to positive territory.
