- It started with a credit warning by Moody’s on its Altico exposure but soon became a full-fledged sell-off on Indian stocks. Apart from Yes Bank, others like IndusInd Bank with large realty exposures also came under pressure.
- Auto stocks are likely to remain under pressure with the weak demand outlook and restrictions on financing to continue. Expect most traders to be cautious and cut long and short positions ahead of the weekend.
- FPIs were net sellers to the tune of Rs.893 crore while DFIs bought Rs.646 crore on Thursday. FPIs have already sold more than $5.2 billion since July; the highest third quarter outflows by FPIs from India since 1999.
- After the disappointment of the Fed language, the markets across the US and Europe bounced back on Thursday as the preliminary level of trade talks between the US and China took off. SGX Nifty is also trading in the positive.
- 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 the SBI withdrawing its repo rate linked home loan scheme and also being relatively less exposed to real estate compared to other banks, it appears to be a safer bet in banking at Rs.273 with targets of Rs.300 in one quarter.
- We reiterate our negative stand on Zee. With promoters barred from further selling of his stake and MFs forced to postpone the deadline, the stock is a good sell at 309 with downside targets of Rs.270 in one quarter.
- Markets are likely to cautious in taking a direction considering the weekend and a bank strike coming up next week.
