- The New Year began with a flourish with the Nifty and Sensex ending higher on Wednesday. Power companies did well on Wednesday with metals seeing some buying interest on the back of the $115 billion stimulus by China.
- With crude prices moving up and ONGC moving lower, the pricing still remains a major issue for ONGC. However, the markets have been worried about the depletion in its cash balance and that is apparent in its low valuations.
- FPIs were net sellers to the tune of Rs.59 crore while DFIs bought Rs.208 crore on Wednesday. As usual, the volumes on the first day have been tepid since most markets across the world, except India and Saudi Arabia, were shut.
- Most markets across the US and Europe were shut on Wednesday due to New Year. Markets have been mixed on Thursday with Korea down sharply and Hang Seng gaining on the back of China stimulus. SGX Nifty is flat in early trades.
- After the recent upgrade in ratings to a top notch category, Titan below the price of Rs.1160 offers a good entry point for targets of Rs.1300 in 2 months time frame. One can look at Titan also as a play on the lifestyle consumption space.
- Vedanta at Rs.154 may offer good value in the aftermath of the China stimulus announced worth $115 billion. This is likely to directly impact base metals players like Vedanta and that is likely to be positive for targets of Rs.180 in a month.
- Sugar stocks have been doing extremely well with lower supply domestically keeping prices buoyant. In addition, the export incentives are also favorable. We like Dalmia Sugars at around Rs.125 for targets of Rs.160 in one month.
- The China stimulus and hopes of an early trade deal should keep the overall markets enthused for the time being.
