- The swearing in ceremony hardly had any surprises with S Jayshankar being the only surprise inclusion. Amit Shah has also been sworn in and is likely to carry a critical portfolio in the new cabinet.
- Crude oil prices cracked close to 4% on Thursday and Brent price have fallen by over 12% from the peak levels touched in early May. Global slowdown continues to be a big worry for the markets right now.
- FIIs were net buyers to the tune of Rs.1665 crore while DFIs sold Rs.(-190) crore on Thursday. FIIs are quite positive about the new government and its reformist thrust. FPIs have already been aggressively buying into bonds this month.
- The US and European markets were in positive territory as of close on Thursday after the sharp sell off on Wednesday. The SGX Nifty is already trading above the 12,000 mark and the domestic Nifty levels could be the real test.
- Post the results and the decision to exit the NBFC and the group pharma retail model, Sun Pharma may have just about seen the bottom. We suggest buying Sun Pharma at prices of Rs.420 for targets of Rs.460.
- In the light of the major thrust we expect for the power sector, NTPC at Rs.135 could be a good bet. Apart from the dividend yield argument, NTPC could also benefit from the power capacity sell offs that are likely this year.
- Despite the tepid results, the core business of Havells has still done well and the pressure is more due to the presence of the Lloyds division. We have a buy on Havells at Rs.720 with a price target of Rs.800 in one quarter.
- The new cabinet formation is likely to enthuse the market to higher levels and may close the week end above the 12,000 mark.
