- The GDP numbers coming in at 4.5% on Friday with 4.3% growth in GVA will surely be disappointing, although largely along expected lines. The markets are likely to react neutrally to the GDP numbers, which were already factored in.
- The one factor that will really concern markets in the GDP numbers is the combination of fall in PFCE and the fall in gross capital formation. That is likely to be negative for companies like L&T, HUVR etc.
- FPIs were net sellers to the tune of Rs.1882 crore while DFIs bought Rs.954 crore on Friday. For the month of November, FPIs infused more than Rs.25,300 crore into equities although they were marginal sellers in debt.
- Markets were weak across the board on Friday on the back of rising uncertainty over the trade deal between the US and China. Asian markets have been mixed but the SGX Nifty is trading in negative zone in early trades.
- The telecom fare hike is likely to be a big game changer for the telecom companies although Jio could benefit the most in terms of profitability. We suggest buying Reliance Industries at Rs.1550 for targets of Rs.1650 in one month.
- We have been suggesting selling out of Zee around the Rs.330-340 mark and those of you who are short can look to cover positions around Rs.290 on the downside. For now, there could be some bounce on the stock.
- We stay positive on NTPC after the merger of THDL and NEEP into the company. NTPC is likely to get quality capacity in the coming months at low costs. We suggest buying into NTPC at Rs.116 for targets of Rs.155 in 3 months.
- We need to see how the markets react to GDP data. Global cues and progress on the trade deal could also hold the key to the market performance.
