- Markets bounced back sharply on hopes that the government may scrap the FPI tax either totally or as an exception. There were also expectations of the LTCG being modified considering weak revenue generation.
- While the enthusiasm in the markets may continue, it is expected that the traders may be a little more cautious considering a long week end with 3 days holidays and a truncated next week. Also traders are cautious ahead of Independence Day.
- FPIs were net sellers to the tune of Rs.437 crore while DFIs bought Rs.291 crore on Thursday. While the pace of FII selling has slackened, it remains to be seen if clarity on the FPI tax leads to reversal of flows from the foreign investors.
- There was a sharp rally across markets. Dow and the NASDAQ saw a strong rally as did markets across UK and EU on positive Chinese trade data. Asia has opened strong although the SGX Nifty remains cautious after a strong rally.
- Long term buyers must look at buying Tata Motors at the current price of Rs.125 where downside risk appears to be minimal. With a turnaround expected in JLR and its EV foray, this could the stock to buy with target of Rs.180.
- Markets are expecting a bounce in oil prices as chances of a revival in Chinese growth combined with OPEC intervention is expected. This could be negative for companies like BPCL and HPCL. Trade on the short side on bounces.
- After the strong results posted by Lupin on Wednesday, one can look to buy Lupin at the current price range of Rs.770-775 with immediate targets of Rs.820 on the stock in the next one quarter.
- Markets may be cautious ahead of the long week end considering that Monday is also a trading holiday. Position trades accordingly.
