- The stock markets were a tad cautious ahead of the trade deal between the US and China and the markets corrected after four consecutive days of rally in the market. Metals continued their rally on Chinese stimulus hopes.
- IndusInd Bank came under pressure despite better than expected results. The markets were disappointed that the provisions and the NPAs were sharper than expected and that did not go down well with the markets.
- FPIs were net buyers to the tune of Rs.280 crore while DFIs sold Rs.648 crore on Wednesday. Surprisingly, the domestic funds have been heavy sellers in the markets in the last few sessions.
- While the NASDAQ stayed in the black, markets across Asia and Europe were in the negative on Wednesday. The Indian markets were also in negative territory and the SGX Nifty is hinting at further downsides on Thursday.
- 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.
- We reiterate caution in IndusInd Bank because despite growth in profits, markets are unlikely to be impressed with the sharp rise in provisioning for NPAs. Look to sell the stock at Rs.1480 with targets of Rs.1350 on the lower side in 1 month.
- We remain negative on Bandhan Bank despite good results. The slowdown in the markets of West Bengal and Assam is not good news for the company and the ownership dilution is still an overhang on the stock.
- The markets on Thursday will be largely driven by the contours of the trade deal phase 1 as well as the direction of oil prices.
