- After a robust early start to trade, the Nifty gave away its entire 100 points gain to marginally lower on Tuesday. With the Congress and the JD(S) getting together to queer the pitch, the markets were disappointed.
- Indian markets could come under pressure due to the sharply higher yields in US treasury yields which touched 3.07%. Most Asian stocks have reacted negatively and we could see a negative reaction on the Nifty also.
- FIIs were net sellers to the tune of Rs.(-518) crores while DFIs bought Rs.531 crore on Tuesday. It will now be interesting to see the reaction of the FIIs after the US benchmark yields cross the 3.05% mark.
- There has been a sharp correction in the markets across the US and Asia. The Asian markets have obviously reacted to sharply higher yields in the US. The SGX Nifty is already 60 basis points down and could come under further pressure.
- Pressure on PSB stocks could continue. With PNB reporting record losses of Rs.13,400 crore and former PNB chief, Usha Ananthasubramanium, being summoned by ED. Expect pressure on PSBs to continue.
- We expect Hindustan Unilever to announce another stellar set of results this quarter and further outperformance going ahead. One can look to accumulate the stock with 20% upside targets from current market levels.
- The big surprise could come from IT companies, both on the large cap and mid cap space as a result of a weak INR. The depreciation has been more than anticipated. We like TCS, Infosys and Hexaware at these prices.
- Markets could come under pressure due to uncertain results in Karnataka and the higher bond yields in the US. Trade cautiously on the positive side.
