- The Nifty and Sensex did not correct sharply but the undertone was surely weak after the ruling BJP ended up on the losing side in Jharkhand. For the ruling party, it marks the loss of one more state in the Hindi Belt.
- Much of the pressure on the markets on Monday came from Reliance Industries. The stock was under pressure after the government refused to approve it stake sale of $15 billion to Aramco, unless the old gas dues were paid up.
- FPIs were net buyers to the tune of Rs.1463 crore while DFIs sold Rs.1947 crore on Monday. The adjustment of the MSCI revamp continues to have its impact on the FPI flows, even as domestic players continue to remain on the sell side.
- US markets remained under pressure in the absence of fresh cues even as most of Europe was flat. Asia is also seeing tepid action ahead of the end of the year. The Indian SGX Nifty is under pressure in early trades.
- SBI remains our top pick in the banking space with its dual arguments of growth and SOTP valuations. We suggest buying into SBI at the current price of Rs.335 for targets of Rs.375 and Rs.380 in one quarter.
- RIL could be under pressure till there is clarity on the Aramco stake sale issue as it is critical to its larger plans to reduce the debt levels. Traders can wait to accumulate the stock at lower levels of around Rs.1450/-
- We have been positive on Berger Paints and continue to prefer the stock even at the current price of Rs.521 with upsides targets of Rs.590-600 in the next on quarter on the back of distinct shift to home solutions.
- We could see volatility build up today as Wednesday is Christmas holiday and Thursday is the last F&O expiry of the year.
