- After a sharp rally on Tuesday, it was a disappointing day for the Nifty and the Sensex as it corrected nearly 450 points from the peak. Autos and Pharma stocks took a major hit in trading on Wednesday.
- Oil has again closed at the psychological level of $68/bbl. Whether it breaches and crosses the 70/bbl mark remains to be seen but any price higher than the current price could mean problems for the Indian economy and for the rupee.
- FIIs were net buyers to the tune of Rs.1482 crores while DFIs bought Rs.135 crore on Wednesday. FIIs have now infused a sum of more than Rs.42,000 crore in the month of March in equity and debt put together.
- US markets were under pressure as the risks of a slowdown came back to haunt the markets even as bond yields moved up again. The SGX Nifty is trading in the red and could see heavy volatility on expiry day tomorrow.
- RBL Bank may up nearly 50% from the October lows but it still has room to go up on improved asset quality and aggressive growth. We target 750 on the stock in the next one quarter as results are expected to continue to flatter.
- NTPC continues to be the dark horse in trade today with the company most likely to benefit from the availability of power generation capacity at reasonable rates once they are referred to NCLT. That is likely to happen in the next fiscal.
- There has been a short build up in auto counters which have had a tough time in this month. We suggest playing Maruti and Tata Motors on the long side for tomorrow to play the short covering story. It is purely an intraday trade only.
- Expect a volatile day in trading on Thursday being the last expiry of the current fiscal with lot of adjustments. Positive on auto on short covering.
