- Despite being at new highs, the indices have been struggling to break the psychological and that may depend on the first session of the Look Sabha starting early next month. Budget is expected a little later.
- The global markets on Tuesday were weak on the back of concerns over the trade war and Italy’s continued intransigence over the debt issue. That is likely to remain an overhang on the Indian markets on Wednesday.
- FIIs were net sellers to the tune of Rs.(-501) crore while DFIs bought Rs.269 crore on Tuesday. FPIs have been consistent buyers since the exit poll and may be turning slightly cautious ahead of psychological barrier levels.
- Markets across the US and UK were weak on concerns over the trade war and the issues with Italy in the EU. The SGX Nifty is marginally in the positive. Jakarta had fallen sharply on Tuesday on the back of weak oil prices.
- After the stellar results, we again reiterate our buy call on NTPC. At Rs.133, the stock has an upside till Rs.170 in the next one quarter as it could be the big beneficiary of the next round of power sector restructuring.
- Use the rise in Zee Entertainment to again sell the stock around the 380 levels for lower targets of Rs.330 on the stock. The deal is yet to go through and there are less than 4 months left for the repayment of FMPs.
- The sharp rise in debt levels of OMCs could be an overhang on the stocks. Unpaid subsidies alone stood at Rs.34,000 crore and that is likely to put pressure on the numbers of these OMCs. Stay short on IOCL, BPCL and HPCL.
- We could see heightened volatility in the markets due to a mix of global cues and cues from the F&O settlement on Thursday.
