- The positive tidings in the market sustained as the crude prices stayed weak and the exports showed some real push, although the trade deficit also rose. Markets were also positive on hopes of the trade war getting sorted out.
- All eyes will be on the critical RBI board meeting on Monday where there could be government pressure to push for easy credit for NBFCs and to let PCA banks to lend. PSU banks and NBFCs could see some positive action.
- FIIs were net buyers to the tune of Rs.845 crores while DFIs sold Rs. (-372) crore on Friday. FIIs have already infused over $1 billion into equities in the month of November although it is a fraction of the FII selling in October.
- Markets across the US and Europe have been mildly in the negative on BREXIT concerns. However, the SGX Nifty is closer to 10,800 on hopes that the RBI board meeting could be positive for banks and NBFCs.
- Take a contrarian bet on PSBs and NFBCs ahead of the RBI meet. Look to buy stocks like BOB, PNB and Dewan Housing at current levels as they could be big beneficiaries of this RBI board meet on Monday.
- 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.
- Coal India at around Rs.263 is looking fairly undervalued. With an 8-fold growth in profits in this quarter, one can expect bumper dividends from Coal India. Look to buy the stock with short-term targets of Rs.300 on the stock.
- We expect the RBI board meeting to end positively for financials and that could be the big takeaway for the markets. Stay positive on markets for now.
