- The judgment by NCLAT is likely to weigh on Tata Group stocks after it ordered reinstating of Cyrus Mistry. While the Tata Group will seek legal recourse, the uncertainty over leadership issues will remain for over a month.
- The US House of Representatives voted 230-197 in favour of impeachment of Donald Trump. Of course, impeachment does not mean that the president will be removed but it surely puts the dollar under a cloud of uncertainty.
- FPIs were net buyers to the tune of Rs.1837 crore while DFIs sold Rs.1268 crore on Wednesday. This is a continuation of the FPI buying ahead of the MSCI revamp, which is expected to result in an overall infusion of $2.5 billion into India.
- US and European markets were flat to negative but Asia has reacted negatively to the Trump impeachment vote in US House of Representatives. SGXC Nifty is also in the negative in early trades on Thursday.
- We expect the marquee Tata group stocks like Tata Motors, TCS and Titan to be under pressure due to the uncertainty over the Cyrus Mistry decision. However, trades must use lower levels to accumulate TCS and Titan.
- Long term investors can start to accumulate Havells around the Rs.642 mark for targets of Rs.680 in one quarter. The stock did correct sharply in July this year but has steadied after that. Valuations are off historic highs.
- With the latest Mumbai project getting a strong response, traders can look to buy Sunteck Realty around Rs.410 levels for quarterly target of Rs.460. The stock also is strong on financials and low on debt burden.
- The focus on Thursday will be on the Trump impeachment outcome and the Fed meet and the MPC minutes ahead this week.
