- The Budget has been a clear boost for the consumer and realty sector and these sectors could see some real buying. We like select auto and FMCG stocks and low debt realty companies at current levels.
- The Chinese decision to import 2 million tonnes of soybeans from the US will be a big boost as it is indicative of a consensus on the trade war issue ahead of the deadline of March 01st. Markets should react positively.
- FIIs were net buyers to the tune of Rs.1316 crores while DFIs sold Rs.(-5) crore on Friday. After taking out Rs.5300 crore in January, FPIs have infused close to Rs.5,000 crore in the first 2 days of February.
- Markets were fairly mixed on Friday, but China celebrated with a 1.3% up move after the US and China appeared to be coming close to a trade pact. SGX Nifty was slightly weak but it should pick up momentum on Monday.
- We continue to stay negative on Zee Entertainment and ICICI Bank with downside targets of another 15% downsides from current levels. We expect that NPA pressures at ICICI and business pressures on Zee will continued to weigh.
- As an outcome of the budget, one can look at upsides in FMCG and auto stocks. In terms of valuation attractiveness, investors can look to accumulate Britannia, Eicher Motors and Maruti at current levels.
- Another big boost from the budget could come from the realty sector. We like DLF and Oberoi Realty with upside targets of nearly 25%from current levels in the next one quarter. HUDCO could benefit from the thrust on low cost housing.
- We expect the markets to show positive trends and could beyond 11,000 Nifty in the coming week on positive domestic and global cues.
