- The markets on Monday were dominated by the 11% spike in crude oil prices, which would have added nearly 0.6% to the Current Account Deficit. The OMCs and the auto stocks were the worst hit by the oil spike.
- We do expect the NBFCs to continue to be under pressure after another default is expected from Altico. Two large mutual funds, UTI and RNAM have a sizable exposure to Altico bonds and that could keep NBFCs under pressure.
- FPIs were net sellers to the tune of Rs.751 crore while DFIs bought Rs.309 crore on Monday. FPI pressure could continue as the rupee has also weakened and that would typically impel the FPIs to go light on India.
- Most of US and Europe were under pressure on Monday on the back of sharply higher crude prices. Asia has been largely mixed with a downward bias. The SGX Nifty is also quoting in the negative and oil could hold the key.
- Titan could be the stock to watch and despite the 2% rally, it is attractive at around 1140 with target price of Rs.1250 in 1 month. It could be the big beneficiary of the sharp rise in gold prices and the geopolitical uncertainty may have just added to it.
- With the new set of export sops taking shape, we reiterate our bets on the speciality chemicals space with a buy call on Aarti Industries at Rs.1550 with targets of Rs.1800 in one quarter with its 45% export intensity.
- Tata Elxsi looks attractive post the sharp correction in the price of the stock and we suggest buying the stock at around 650 for price targets of Rs.690 in the first phase and Rrs.750 in the medium term. Could be a big gainer from restructuring.
- Oil will continue to be the major overhang for Indian markets due to its high sensitivity to landed prices and import dependence of oil.
