- The speculative impact may be much lower on Friday with the next two settlements being clubbed due to holidays. Lack of speculation may ensure that markets stay higher on Friday.
- The total Nifty EPS for the first quarter at Rs.114 provides an annualized P/E ratio of 24.3 to the Nifty. On a trailing basis that does not leave much room for a Nifty spurt. A lot will depend on how PSU banks turn around in the coming quarters.
- FIIs were net sellers to the tune of Rs.(-825) crores while DFIs bought Rs.133 crore on Thursday. The FII sentiments have turned negative after the sharp rise in the trade deficit and the consequent weakening of the INR in the last few days.
- Some semblance of rationality returned to the global markets as markets across the board showed signs of bouncing back. For India, the real concerns could be more domestic like GDP growth, trade deficit, CAD and rupee.
- With a sharp correction in the stock of Kotak Bank, the stock looks a good buy at around the Rs.1250 levels. The capital dilution is likely to get sorted in this current form as it is in line with the letter of the law. Expect targets of Rs.1400.
- After the recent results announcements from PSU banks like IDBI Bank and Allahabad Bank, we expect the NPA worries to continue for few more quarters. Expect selling pressure on PSU banks and play on the short side.
- We get back to reiterating our buy recommendation on Tata Motors as the problems at JLR are likely bottomed out and the China concerns may not be really pronounced. One can look to buy at Rs.250 for targets of Rs.350 in 1 quarter.
- A lot would depend on the currency cues from Turkey and trade deficit. Markets are likely to remain subdued with a positive bias due to clearing holidays.
