- The global markets continued to reel under the spell of slowdown fears as Indian auto stock and metal stocks took deep hits. The metals stocks have come under pressure on China growth concerns, which is a key driver of prices.
- Quarterly of auto companies have not been too encouraging this quarter although select FMCG companies like Dabur and Hindustan Unilever have given decent growth performance despite. We could see safe money moving to FMCG.
- FIIs were net sellers to the tune of Rs.704 crore while DFIs bought Rs.1352 crore on Monday. FPIs have now sold closer to $2.2 billion in the 3 weeks post the Union Budget on a mix of tax and growth concerns.
- Even as all the world markets remained weak, the UK markets got a surprising boost after the Pound slid sharply on the back of BREXIT uncertainty. SGX Nifty is marginally in the positive but that may be just about deceptive.
- After the recent rally in ICICI Bank, we would normally get a little cagey on the stock. While results have shown greenshoots of recovery and bottoming out of NPAs, most of the good news may already be in the price. It is time to exit.
- One can look to accumulate Bank of Baroda after better than expected results on the counter. Look to buy in the range of Rs.110 to Rs.112 for upside targets of Rs.150 and Rs.155 on the stock in one quarter.
- We are back to safe havens and stocks like Infosys could offer the best safe haven at this point of time. One can look to continue accumulating the stock around Rs.790 levels for targets of Rs.850 in a month.
- Markets are likely to remain tense ahead of the Fed meet which concludes on 31st July. The rate direction will be the key to market outlook.
