- The stock markets will be heavily counting on the finance minister to provide to the boost to the markets either in the form of clarity on reforms, exemption from certain taxes or a big growth boost proposal from the government.
- Global markets have been cautious over the previous week on global concerns over delayed BREXIT preparations and the inversion of the US yield curve. This is also a data heavy week and that could drive markets.
- FPIs were net sellers to the tune of Rs.1339 crore while DFIs bought Rs.1058 crore on Friday. After a brief respite in selling during the previous week, FPIs are back to selling in the cash market. A lot will now depend on the FPI tax issue.
- Markets were in positive territory across the US, Europe and parts of Asia on Friday. However, the SGX Nifty continued to stay flat in late trades. US yield curve and the trade war with China could hold the key to global markets.
- Apollo Hospitals is a stock that has got over its long range capital spending and also its concerns last year over the pledged shares. We suggest buying the stock around 1470 for one month targets of Rs.1600 on the stock.
- Glenmark has corrected nearly 50% in the last one year and is currently quoting at a P/E ratio of just about 7X historic earnings. We suggest building longs in Glenmark at current prices with targets of Rs.450 in one quarter.
- There has been a sharp correction of nearly 50% in RBL Bank and that has taken care of most of the froth in the stock. One can look to accumulate in the range of 380-390 with targets of Rs.450 in one quarter.
- The movement during the next couple of days will be largely a reaction to the package that the government is expected to announce this week.
