- Markets closed very strong with a favorable A/D ratio of 37:13 on Tuesday on the back of a very positive BJP manifesto promising nearly $1.7 trillion investment in infrastructure and farm incomes overall.
- Brent prices again faced resistance at $71/bbl on Tuesday as IMF downgraded global growth to 3.3%, lower than the original 3.5%. This has put a lid on the oil price rise. We see that as positive for the downstream oil companies.
- FIIs were net buyers to the tune of Rs.1213 crores while DFIs sold Rs. (-689) crore on Tuesday. FPI infusion into Indian equities has already crossed the Rs.10,000 crore for the month of April. DFIs continue to face liquidity pressure.
- Most world markets came under pressure on Tuesday after the IMF downgraded global growth by 20 bps. Asia too is weak on Wednesday morning and the SGX is also trading in the negative. That is likely to be an overhang in trading.
- Yes, Bank may still be available at reasonable valuations and the change in management may not be fully factored into the stock price. We expect upsides of Rs.330 on the stock in the next quarter..
- With the rupee weakening and likely to be under pressure due to the dollar swap auctions, the IT stocks could once again be in favor. We are positive on Infosys around the 765 levels for quarterly targets of Rs.850.
- With the global slowdown likely as per IMF, the immediate concern of downstream oil refiners may be gone. We suggest buying IOCL at Rs.153 for targets of 180 in one quarter and annual target of Rs.250 on the stock.
- Markets will now keenly await the results of Infosys and TCS on 12th of April which will set the tone for the markets in the days to come.
