- The Trump language has changed the mood of the market but the sharp bounce in crude indicates that the market has not taken the Trump threats too seriously. Markets are betting that even the US cannot afford a trade war.
- Most stocks came under pressure especially, FMCG as we have mentioned yesterday. Metals are likely to be under pressure on China worries. Banking could be more of an NPA issue in India.
- FIIs were net sellers to the tune of Rs. (-949) crore while DFIs bought Rs.90 crore on Monday. After infusing nearly $10 billion since February, FIIs appear to have turned negative on India ahead of the political outcome.
- The correction was as high as 5.78% in China and 3% in Hong Kong and Singapore. However, the correction in India was more subdued and the SGX Nifty is showing signs of a recovery. US markets will be the key.
- With ICRA downgrading the debt of Yes Bank combined with the equity downgrade by Macquarie, we expect the problems at Yes Bank stock to deepen. Get prepared for prices of below Rs.130 and trade accordingly.
- Marico has announced good results and appears to be one of the FMCG companies to buck the growth trend. With the 5% correction post results, one can look to accumulate the stock for 15% upsides from the current level.
- We reiterate our negative stand on ICICI Bank after the results, especially the fall in profits due to higher provisions. Gross at NPAs are still close to 7.5% and that is not too comforting. We target the stock back at Rs.350 in one quarter.
- The next couple of days could be crucial for the markets as the world markets adjust to the threat of tariffs.
