- The markets did celebrate the Phase 1 of the trade deal but that did not last long as the concerns over growth came back to haunt Indian markets. Metals saw some correction on Thursday.
- Keep an eye on the pre budget expectations as the markets are expecting some major shifts in the form of lower taxes and a revamp of the existing capital gains structure. These could be the drivers of the market in the short run.
- FPIs were net sellers to the tune of Rs.395 crore while DFIs sold Rs.185 crore on Thursday. Institutional action has been tepid despite the trade deal and the bigger area of interest is in the practical implementation of the deal.
- While markets were tepid to negative, the NASDAQ continued its rally taking the technology stocks to new highs. The SGX Nifty is flat and is likely to be cautious ahead of another week end.
- GAIL looks fairly undervalued at Rs.130 considering its matured business model and a more business-friendly gas pricing formula. One can look to accumulate GAIL at these levels for targets of Rs.160 in one quarter.
- Long term investors can look to buy Triveni Engineering, a stock likely to benefit from the sugar rally. The stock is at 7X P/E ratio and already quoting close to its 52 week high. One can buy at Rs.82 for targets of Rs.120 in 3 months.
- We see Sun TV as a good proxy for the media sector in India with Zee paying the price of its indiscretion. The stock is worth buying at Rs.480 levels for targets of Rs.600 in one quarter from here.
- One can expect markets to be cautious ahead of the week end as there are still some critical data flows that are pending at a global level.
