- If the Infosys allegations weighted on the markets on Tuesday, then the bigger issue could be the uncertainty over BREXIT, when markets open on Wednesday. With UK moving towards no-deal, UK exposed companies could be hit.
- Banks have continued to flatter in terms of numbers but the loan growth stress is visible across private banks. We expect funds to gravitate into stocks like ICICI Bank, Kotak and HDFC Bank and away from Yes, IndusInd, Axis and RBL Bank.
- FPIs were net sellers to the tune of Rs.558 crore while DFIs sold Rs.985 crore on Tuesday. It is expected that a large part of the selling on Tuesday was driven by Infosys and a bunch of other tech stocks where profits were taken off the table.
- US markets were positive through the day but lost value late in the day after the BREXIT vote again failed to get through. UK markets were positive on the back of weaker Pound. Most of Asia, including SGX Nifty, is flat in Wednesday trades.
- Infosys is the stock to watch out for and despite the recent whistle blower concerns, we continue to be positive. Those who are long should hold on and use dips to accumulate more of the stock at lower levels. Target buys range 600-650.
- BPCL has rallied sharply since the news of its divestment first broke out. If you are long on BPCL it is time to book profits off the table because most of the short to medium term positives from the privatization are already factored in the price.
- One can look to buy DLF from a medium term perspective of 1 year for upside targets of Rs.260-280. The company is likely to benefit immensely from its internal restructuring as well as the plan to become zero-debt by early 2021.
- The big underlying worry for Indian markets on Wednesday could be Infosys class action suits and the progress on the BREXIT deal.
