- Despite the US withdrawal from the Iran Nuclear deal and the spike in oil prices, Indian markets continued their up move on Wednesday with the Nifty closing near the 10,750 mark. Focus will continue to be on global cues.
- Tata group shares were all sharply up on Wednesday on hopes that the group restructuring could be pushed through much faster. Tata Motors, Titan and Tata Steel could be the big beneficiaries in the coming months.
- FIIs were net sellers to the tune of Rs.(-704) crores while DFIs bought Rs.665 crore on Wednesday. The INR decisively plunged towards the 67.5/$ mark on Wednesday and this could put further pressure on the FII flows.
- Markets across the US and Europe rallied sharply by up to 1% on Wednesday. Asian currencies weakened in the last few days and these economies are foreseeing a push to their exports performance. SGX Nifty is flat.
- We have been calling upon investors to create a portfolio of Tata group companies to benefit from the restructuring. A portfolio of Tata Motors, Tata Steel, Tata Elxsi and Tata Power could be a good portfolio to make the best of these changes..
- It may be time to start accumulating Ultratech with the Binani deal likely to go in favour of the highest bidder. Ultratech can derive huge benefits of scale from the buy-out and we foresee a price target of Rs.4400 on the stock.
- TVS Electronics in the digital space has once again come back to a more buying range for investors. We see the stock getting back to Rs.550 levels on digital traction and recommend buying.
- With the US withdrawing from the Iran deal, the global reaction could be interesting. That could be the key driver in the coming weeks.
