- Along with expected lines the Nifty closed in positive territory on hopes that the RBI/government differences would get sorted out. The meeting was largely productive and the markets should celebrate tomorrow.
- The outcome of the board meeting is likely to be positive for NBFCs and for PSU banks. The RBI is likely to agree to liquidity support to NBFCs and relaxation of PCA norms, although the capital sharing may be put on hold.
- FIIs were net buyers to the tune of Rs.1103 crores while DFIs sold Rs. (-310) crore on Monday. FIIs have already infused over $1 billion into equities in the month of November and this is again a truncated week with one trading holiday.
- The Dow and the NASDAQ are deep in the red correcting over 2% on Monday even as Europe has remained tentative ahead of BREXIT. SGX Nifty is under a little bit of pressure but could see some selective buying on Tuesday.
- After the RBI meet we continue to be positive on PSBs and NFBCs. Look to buy stocks like BOB, PNB and Dewan Housing at current levels as they could be big beneficiaries of this liberalized approach by the RBI.
- Long-term investors must look to accumulate Motherson Sumi which has nearly halved during the year on global growth concerns. The downside risks may be largely limited at these levels and investors can take a serious look at it.
- One can take a contra bet on Dish TV as the company could be a beneficiary of the overall restructuring of the group and stake sale to a global media giant. At Rs.38, the downside risk is quite limited for investors.
- While the RBI meeting outcome will be positive for markets, it may be driven by global cues since Wednesday is a clearing holiday for markets.
