- The election reverses were soon forgotten as the Nifty celebrated the appointment of Shaktikanta Das as the new RBI governor. Das is expected to adopt a more lenient approach towards banks, NBFCs and liquidity overall.
- Banks like Yes Bank, IndusInd Bank and Bandhan Bank that were stuck in RBI related issues are now likely to breathe more freely in a regime that is broadly expected to be more bank-friendly.
- FIIs were net sellers to the tune of Rs.(-1299) crores while DFIs bought Rs.1122 crore on Wednesday. FPIs continue to be cautious on the back of the weak rupee which has gone beyond the 72/$ mark on Wednesday.
- Even as Theresa May won the Vote of Confidence, the US and European markets gave a virtual thumbs-up for the markets supported by the most of Asia. SGX Nifty is already quoting above the 10,800 mark.
- Watch out for banks like Yes Bank and Kotak Bank which are likely to see some rapprochement with respect to their current situation. Most PCA banks could also benefit from a more bank-friendly regime.
- With the results in the Hindu heartland favouring the Congress, the Indiabulls group could see some revival of interest from traders and investors alike. Trade positive with focus on stocks like Indiabulls Housing Finance.
- With the rupee showing a weak trend, traders must look at select IT stocks like Infosys to buy at current levels. We see an upside potential of nearly 20% from current levels on Infosys.
- The markets seem to have reconciles to the assembly results. However, one needs to be cautious as the Nifty gets closer to the 11,000 mark.
