- Markets continued to rally for the third day in succession after the initial budget jitters but markets are likely to be a lot more cautious on Friday being the last trading day of the week. Expect some profit taking towards the end.
- The monetary policy maintained status quo on rates but that was largely expected. However, the markets appreciated the incentives that the policy provided for sectors like real estate, automobiles and MSMEs in terms of lower CRR.
- FPIs were net sellers to the tune of Rs.560 crore while DFIs bought Rs.304 crore on Thursday. The debt yields fell on Thursday and that is likely to induce more FPIs to commit monies to investing in Indian debt paper.
- Markets were higher across the US and Europe but across Asia markets were flat to negative. SGX Nifty is also trading flat in early trades and is likely to be cautious as it goes into an uncertain weekend.
- It is time to pick up some sold metal and mineral names to play on the recovery of demand in China. Stocks like Vedanta and NMDC could show a spike of 20-25% in the next one quarter and one can position long to play these trends.
- With a favorable credit policy, look to accumulating select realty companies like LIC Housing, GIC Housing and Godrej Properties in your portfolio. These stocks could see re-rating to the tune of 30-35% from the current levels.
- The latest deal with Total of France gives a big boost to Adani Green Energy. One can look to buy the stock at around the 202 levels for targets of Rs.240 in the short term and longer term targets of Rs.300 on the upside.
- Markets are likely to be relatively subdued on Friday as it goes into the weekend with a lot of uncertainty still surrounding the global market scenario.
