- The Nifty and the Sensex showed a sharp bounce on Tuesday despite a disappointing performance by the NDA in the Delhi assembly elections. Markets had already factored in the risk after the exit polls were announced.
- There was a sharp rally in PSU stocks on Tuesday essentially the PSU stocks with substantial cash reserves. There are expectations that the government may induce these PSUs to payout higher dividends or special dividends ahead of March 2020.
- FPIs were net sellers to the tune of Rs.209 crore while DFIs bought Rs.345 crore on Tuesday. However, since the beginning of the month of February, FPIs have been aggressively buying into debt on accommodative stance by the RBI.
- Most markets across the US, Europe and Asia bounced on Tuesday on the back of expectations that the problems of the Chinese Coronavirus was gradually abating and the death toll could now stabilize around the current levels.
- This is a market to buy into strength and one can seriously look at buying into stocks like Infosys at a time when the rupee is under pressure. One can start accumulating Infy at around Rs.770 for targets of Rs.830 in one month.
- NTPC could be the dark horse in the PSU space with prospects of good growth and also good dividend yield. We suggest buying the stock at around Rs.115 levels for upside targets of Rs.145 in one quarter time frame.
- With the weak results and the recent rejection of SPARC drug, Sun Pharma stock could come under pressure. You can look to sell the stock around Rs.420-422 for downside targets of Rs.390 on the stock in one quarter.
- With the Delhi counting out of the way, rate sensitives are likely to react to the possibility of higher CPI inflation to be announced today.
