- Two stocks actually held the markets up on Monday; Infosys and Sun Pharma. While Infosys benefited from positive guidance, Sun Pharma benefited from a spate of broker upgrades from Morgan Stanley.
- The trade numbers have hinted at weak exports and that may not be great news. One can look forward to some negative vibes on that front. A lot would also depend on how oil prices pan out, which had weakened on Monday.
- FIIs were net sellers to the tune of Rs.216 crore while DFIs bought Rs.592 crore on Monday. Interestingly, FPIs have infused more than $1.3 billion into Indian bonds in July on the back of strong rupee and high real rates.
- Global markets have been flat to negative and the lower China growth is likely to impact most emerging markets negatively. SGX Nifty is also under pressure on early trades and China worries could rub off on markets today.
- We reiterate our buy calls on Infosys and Sun Pharma as a defensive and a case specific buy at these prices. We target Rs.850 on Infosys and Rs.460 on Sun Pharma in the next one quarter, with further upsides likely.
- We have been talking about private insurers like SBI Life and HDFC and both stock are up nearly 8% from our recommended levels. We still expect another 10-15% upside in both the stock in the next one quarter.
- We reiterate our buy call on UPL at lower levels of Rs.648 with upside targets of Rs.750 in one quarter as the full benefits of its Arysta acquisition in the Americas starts getting value accretive for the company.
- There is likely to be negative reaction in the markets for the China slowdown, although any stimulus announcement could be an advantage.
