- The global markets reacted positively to the Fed Chair, Jerome Powell’s dovish statements. Nifty also saw an all round bounce led by financials and auto. IT stocks continue to be under pressure.
- All eyes on Friday will be on the Infosys results. TCS did witness a weakening of the sales and profit situation with the operating margins distinctly weaker. IT companies are facing the higher cost of international recruitment.
- FIIs were net sellers to the tune of Rs.317 crore while DFIs bought Rs.720 crore on Thursday. Even outside the FPI tax issue, the dovishness of the Fed is likely to make the FPIs more willing to take up risk-on trades in emerging markets like India.
- There was some weakness in NASDAQ in late trades after the US markets had scaled new highs. The SGX Nifty is also under pressure with week end unwinding likely to keep the indices under pressure.
- Notwithstanding the bounce in Zee, we remain negative on the counter. The company is going to find it difficult to raise the funds at the valuations that they are looking at. The stock can be played for an eventual correction.
- With China looking to boost its economy in the light of the weak GDP numbers expected, one can look for demand for metals. We are positive on stocks like Tata Steel and JSW Steel at these levels for 15% upsides.
- After a long correction, the stock of Himatsingka Seide may have just about bottomed about. Buy the stock at around Rs.165 with targets of Rs.200 in one quarter. The valuations are also quite compelling at around 6X earnings.
- While monsoon revival has been good news for the economy, the immediate concern will be the aftermath of the Union Budget announcements.
