- The Nifty and the Sensex did not get a chance to react to the sharp 800 points in the Dow on Wednesday as the markets were shut on Thursday. That impact has been showing in early trades and a lot would depend on Asian cues.
- The risks of a global slowdown continued to be quite pronounced with the bond yields in the US taking a negative shape. The sharp fall in oil prices is also indicating global growth being toned lower. A lot would depend on China.
- FPIs were net buyers to the tune of Rs.1615 crore while DFIs bought Rs.1620 crore on Wednesday. The sharp uptick in FPI investment has been a big surprise as the selling has been sharp since July 05th.
- SGX Nifty has been trading in positive territory on Friday on the back of mixed cues from Asia. Markets have been enthused by the PM committing the nation to infra investments and also ease of business in his Independence Day speech.
- On the back of favorable results, Sun Pharma saw a sharp bounce and that trend is expected to continue in the coming weeks. We suggest buying into Sun Pharma with targets of Rs.475 and Rs.510 in the next one quarter.
- UPL continues to offer value after its sharp 50% correction from peak levels. While debt is an issue, the Arysta acquisition is likely to be cash flow positive and that should help valuations. We target Rs.600 on the stock in the 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.
- Markets are likely to react positively to the Independence Day speech, although global cues will continue to rule the roost.
