- The indices were biding time on Wednesday after the rather frenetic rally on Tuesday. The undertone stays positive after hopes of a rate cut considering the low levels of WPI and CPI inflation for December.
- The recent statement from the US Trade representative will not go down well with the markets today as it is almost a clear admission that the trade talks with China are not progressing. Expect some pressure on markets on Thursday.
- FIIs were net sellers to the tune of Rs.(-90) crores while DFIs bought Rs.304 crore on Wednesday. The global flows are likely to remain tepid till there is clarity on the outcome of the US-China trade talks, and indications are not too good.
- Markets across the US, Europe and Asia have been extremely tepid in the absence of fresh cues. The US trade statement could be a dampener. The SGX Nifty is in positive zone but that could change with Asian cues.
- We continue to remain positive on Yes Bank. We have been pushing the stock from Rs.180 and believe that even at Rs.207 it still holds value. With a new management soon, expect the stock to get closer to Rs.250 in this quarter.
- We reiterate our Buy call on SBI and we expect this quarter to be the second consecutive quarter of positive surprise. Lower yields, credit off-take push as well as the bottoming of the NPA cycle set a target of Rs.350 for SBI this quarter.
- With the overall restructuring likely in the Tata telecom properties, expect the land bank value of Tata Communication also to reflect in the price. At Rs.530, the stock has an upside of nearly 20% from current levels.
- The rupee needs to be watched as it has consistently weakened beyond the 71/$ mark. That could be the key data point for markets.
