- The SGX Nifty on Monday came under pressure due to Trump’s decision to withdraw the special status to Indian imports. This is likely to impact Indian exports to the tune of $5.7 billion and is likely to negatively impact markets.
- According to estimates put out by Goldman Sachs, the MSCI decision to upgrade China’s weight will lead to selling in the Indian markets by ETFs to the tune of $3.8 billion by November. That is likely to remain an overhang on markets.
- FIIs were net buyers to the tune of Rs.198 crores while DFIs bought Rs.117 crore on Friday. FIIs have been buying into select counters in the last few days but are likely to be cautious ahead of the proposed MSCI downgrade of India weight.
- Most of Asian markets are under pressure with the SGX Nifty trading in negative territory. Broadly, the US proposal to withdrawal the Special Trade Status and the MSCI downgrade will be key factors to watch out for.
- Broadly, we remain cautious on the Indian markets in the short term. We expect both the factors; US trade and the MSCI to weigh on Indian markets. Markets are likely to be met with resistance at each bounce.
- L&T is the one stock to watch out for as order books have shown a distinct sign of turning around. We suggest buying L&T at Rs.1280 levels with target of Rs.1,400 in one quarter.
- With a new management in place and the RBI almost giving a clean chit, we like Yes Bank in the range of Rs.225-230. We have a price of target of Rs.290 on Yes Bank in the next one quarter.
- Markets may face pressure today with the US trade announcement and the MSCI downgrade. Higher oil prices could also be an overhang.
