- A day after India imposed punitive tariffs on 28 items of import from the US, the markets reacted negatively. There was a general concern that a prolonged trade war would only put further pressure on the Indian economy.
- With the US expected to retaliate, Indian metal stocks took a hard beating on Monday. Even banks and NBFCs were under pressure as Jet Airways moved one more step closer to bankruptcy.
- FIIs were net sellers to the tune of Rs.331 crore while DFIs bought Rs.1258 crore on Monday. While FIIs still have hopes on the budget, the escalating trade war with the US will only lead to a crisis of confidence for the FIIs.
- US markets rebounded sharply on expectations that the Fed would cut rates by 25 basis points on 19th. While the CME probability has been falling, it does look like Trump may prevail over the Fed and get a rate cut executed.
- It is time to stick to quality in each sector, especially vulnerable sectors like the NBFC space. Buy Bajaj Finance at current market price for an upside target of 20% from here in sync with the growth in consumption.
- With the IIP numbers indicating a gradual recovery in the capital investment cycle, L&T could be a big beneficiary. We suggest buying the stock around the Rs.1525 levels for targets of Rs.1800 in one quarter.
- The correction in Indiabulls Housing to around Rs.640 levels must be used to accumulate more of the stock. With the immediate headwinds out of the way, the stock may be poised to get closer to the Rs.800 mark.
- Current account number could hold the key as could the Fed rate decision that is expected to be announced late on 19th Trade accordingly.
