• The results of Infy and TCS announced on Friday evening are likely to weigh on the markets on Monday. While TCS was on par, the results of Infosys were below expectations.
  • The CPI inflation came in higher at 2.86% while the IIP disappointed at just 0.1%, sharply lower than the market expectation of 2% for the month of February. This is likely to weigh on the markets on Monday.
  • FIIs were net buyers to the tune of Rs.897 crores while DFIs sold Rs. (-16) crore on Friday. FPIs have already infused more than Rs.14,000 crore into the equity and debt markets in the first 10 trading sessions of the month.
  • Most of the US, Europe was positive on Friday and Asia is also strong in early trades. However, Indian markets could be under pressure due to domestic factors like below par Infy results, weak IIP numbers, and rising inflation.
  • The FMP episode has exposed the vulnerability of Zee. The stock is unlikely to find buyers at the current price and anything lower will mean the value of the Zee shares as collateral will go down. It is Catch-22 either ways and target Rs.350.
  • We see Tata Motors again scaling back to its levels of around 250-260 in one quarter and short term traders can look to Tata Motors to trade for the turnaround in the JLR numbers in the last quarter.
  • We reiterate our buy call on Indiabulls Housing at around the Rs.825 levels with targets of Rs.950 in one quarter as the stock is likely to benefit from the proposed merger with LVB with a larger Southern franchise and a banking license.
  • We expect the markets to be cautious on Monday on the back of Infosys results and the weak macro numbers.