- FPIs have infused nearly Rs.9,000 crore into equities in the month of April and that is likely to underline the continued enthusiasm of the foreign investors in Indian equities. FPIs were net sellers in bonds.
- The housing stocks could continue to be in action due to the announcement of a securitization mechanism in the monetary policy. We do see value in HFCs like LIC Housing and GIC Housing.
- FIIs were net buyers to the tune of Rs. 798 crores while DFIs sold Rs. (-326) crore on Friday. The FPI buying spree that began in late February has continued into the first week of April too.
- Global markets ended on a strong note on Friday. Markets across the US and Europe were in positive territory even as the SGX was marginally in the positive. Cues on the global trade war will be the key to the markets on Monday.
- We believe that the proposed merger of LVB and Indiabulls Housing will be positive for Indiabulls. It gives them access to a banking license and also to the strong southern franchise. We see Indiabulls Housing crossing the Rs.1200 mark this quarter.
- The Supreme Court order striking down the RBI Feb 12th Circular will be negative for most PSU banks, especially those with large exposures. We are negative on SBI, BOB, and PNB with large exposures to problem assets.
- Use bounces in the market to sell Zee either through futures or throughput options as the price may still be too steep for a deal to happen. It will happen but at a much lower valuation. Play accordingly.
- It is a new week and a lot will depend on global cues. The results season also starts this week and that will be a key trigger for markets.
