- The stock markets on Thursday were disappointed by the RBI not cutting rates by 25 bps as was widely anticipated. However, the reaction was not too negative due to the RBI maintaining the accommodative stance for the policy.
- The markets would be a little more disappointed by the RBI decision to downgrade full year growth to just 5%. That leaves an average growth of just 5.25% in GDP for the last two quarters of the current fiscal year.
- FPIs were net buyers to the tune of Rs.653 crore while DFIs sold Rs.410 crore on Thursday. For the debt flows from FPIs, this status quo on rates will be positive as the real interest yields in India are still held at attractive levels.
- Global markets continued to remain uncertain with the trade deal making little progress due to the unwillingness of both the sides to relent. Oil prices have also been moving up on the back of supply cuts proposed by OPEC.
- With Japan looking at a $120 billion stimulus, China could follow suit and we could see a rethink on the metals pack. One can look to buy stocks like Vedanta and NMDC at current prices for upside targets of 20-25% from current levels.
- With Britannia having corrected from higher levels, it gives a good opportunity to add at the current levels of Rs.3080. One can look to add positions from a 3 month perspective with a target of Rs.3450 on the up side.
- One can look to accumulate Ujjivan SFB on listing. It has secured tremendous response in the markets and is likely to get a good listing. Accumulate post listing in the range of 45-48 for targets of Rs.65 on the upside.
- There could be some caution in the markets as we move into another week end and traders could prefer to stay light in the market.
