- The US markets reacted very tepidly to the Fed rate cut after the voting at 7:3 did not appear to be too convincing. Also the Fed did not provide any trajectory of future rate cuts and that left the markets disappointed.
- Banks and financials may see some positive movement after the Fed rate cut could push the RBI towards another rate cut in October, although the quantum of cut is not too clear. The yields need to be watched for signals.
- FPIs were net sellers to the tune of Rs.959 crore while DFIs bought Rs.780 crore on Wednesday. FPIs have continued to put pressure on the markets with global uncertainty leading to sustained risk-off trading.
- Markets were largely mixed on Wednesday. The US markets had a muted reaction to the Fed rate cut while European markets were negative on German growth concerns. SGX Nifty is marginally in the red.
- 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 China embarking on its stimulus program, metal stocks are likely to be in the positive territory. We remain positive on Tata Steel and also on Vedanta at current levels, with 15% upside potential from current levels.
- IOC could benefit from higher oil prices as it gets re-valued positively after the oil price hike post the drone attacks. We see the stock as a good buy around the Rs.125 levels for targets of Rs.155 on the upside.
- The market sentiments are likely to be driven by the Fed rate cut. Financials could benefit on expectations of a rate cut in October by the RBI.
