- After losses of nearly Rs.1 trillion announced by the 3 telcos, all eyes will be on the telecom rescue package. The telcos have written off the AGR charges against their Q2 revenues but it leaves a big hole they have to fill. Debt is another issue.
- The new week begins with the hopes of a likely trade agreement between the US and China. With the latest concessions given to Huawei, it looks like China and the US are trying to meet half way to sort out the issue in an amicable manner.
- FPIs were net sellers to the tune of Rs.1008 crore while DFIs bought Rs.538 crore on Friday. FIIs have already infused net Rs.19,200 crore into equity and debt put together in the first half of the month of November.
- Markets across the US, Europe and Asia were positive on Friday as hopes of an early trade deal was doing the rounds. This buoyed global markets. The SGX Nifty continues to be slightly sceptical ahead of the telecom rescue plan.
- Banks are likely to gain, especially the PSU banks in the light of the Essar Steel judgement where COC gets predominance in any insolvency. The order is likely to be positive for PSU banks like SBI and BOB for 10% upsides.
- After the sharp correction from peak levels, traders can look to accumulate Glenmark Pharma at around the Rs.295-300 mark for upside targets of Rs.350 in the next one quarter time frame.
- After the sound results, one can look to buy Amara Raja Batteries around the Rs.730 levels for upside targets of Rs.800 in one quarter. The niche play would be an advantage plus its expertise in emerging technologies.
- Markets have positive cues from global markets but telecom cues will continue to hold the key to the performance of Indian markets.
