• The Nifty almost closed at where it started but financials like Indiabulls Housing, HDFC and IndusInd Bank showed good buying traction. The finance space is literally getting split down the middle based on asset quality.
  • NTPC came under pressure after the forced stake acquisition in NHPC worth $2.6 billion. Shareholders of NTPC were not too happy with hydro as part of NTPC’s non-fossil portfolio at this point in time.
  • FIIs were net sellers to the tune of Rs. (-1196) crores while DFIs bought Rs.97 crore on Wednesday. The rupee will be closely watched if it can breach the 69/$ mark as that will be an indication of future strength.
  • US markets led by the Dow and NASDAQ appear to be celebrating higher growth prospects as they rallied sharply on Wednesday. While European markets were weak, the SGX Nifty is still strong and getting closer to 11,200 marks.
  • Consumer stocks may still be the big story from here on. We like Hindustan Unilever and Britannia for further 10% upsides from current levels. Apart from food, paint companies also look to make the best of GST cuts.
  • Keep an eye on JSW Steel after its massive expansion plan to the tune of Rs.45,000 crore. The 30% capacity expansion by 2020 will help JSW capture a chunk of the demand upside that is likely in steel in the domestic market. Upside 25%.
  • Vedanta has taken strong support around the Rs.200 levels. With the heat over the Tuticorin protests behind and the commodity cycle unlikely to be affected in a big, way, it may be time to buy Vedanta at around 218 levels for a target of Rs.260.
  • Nifty may cross the 11,200 levels in this rally but markets will get a little cautious at higher levels as the date of policy approaches. Trade with caution in August.