- The US markets came under pressure after the Fed gave out a very hawkish tone on the rates front. Fed has hinted at another 2 rate hikes in 2018 and 3 more rate hikes in 2019.
- Indian markets could face pressure today at higher levels as the rate hike story will not go down too well with the Indian markets. The Nifty may face pressure in early trades even as Asia is likely to be under pressure on China Tariffs
- FIIs were net sellers to the tune of Rs.(-71) crores while DFIs bought Rs.486 crore on Wednesday. With the US Fed getting more hawkish, we could see sharpened selling from FIIs coming into the Indian markets.
- Asia is under pressure and the combination of US rate outlook and China tariffs could have a negative impact on Indian markets. SGX Nifty is under pressure and is likely to face resistance around the 10,800 levels.
- With the rupee under pressure, the action could be focused on pharma and IT for now. We like Lupin and Aurobindo in the pharma space while Tech Mahindra is our top pick in the IT space.
- With a massive plan to expand the roads network, the investors can seriously look at companies like NBCC which look set to benefit the most. Buy in the range of 85-87 with targets of 100 in 1 month and 125 in 3 months time frame
- With the government likely to farm out more defence orders in the next 1 year and a greater focus on domestic production, BEL after its correction, may be the stock to pick. We suggest buying for targets of Rs.150.
- Trade cautiously on Thursday as the Fed rate hike and the hawkish guidance is likely to put pressure on the Indian markets.
