- On a day when the markets showed positive undertones, the domestic and global risks continued to weigh on the markets. IT stocks continued to be under pressure as TCS reacted negatively to the weak margin numbers for first quarter.
- Pharma could be the dark horse in the next one quarter in terms of stock performance. Stocks like Sun, Aurobindo and Lupin could see positive traction as risk off domestic money moves to safer havens like pharma and IT.
- FIIs were net sellers to the tune of Rs.445 crore while DFIs bought Rs.638 crore on Tuesday. The selling on Indian equities by FIIs has been consistent although they have been net buyers in debt by a margin.
- The Dow Jones was flat and the NASDAQ was weak on the back of dollar strength but European markets were strong on the back of a weak currency after strong US retail data. Japan has been in the red and the SGX is also hinting at a weak start.
- One can look to take a long term bet on Tata Motors considering their large bets on the EV and green auto space. Accumulate the stock in the range of 150-170 for targets of Rs.300 in one year.
- Investors who are holding on to HDFC AMC must look to sell at the price of Rs.2010. Apart from the FMP issue, the AMC also has the overhang of overpricing as the market cap is at 50% premium to the benchmark sale value based on AUM.
- We reiterate our buy call on UPL at lower levels of Rs.648 with upside targets of Rs.750 in one quarter as the full benefits of its Arysta acquisition in the Americas starts getting value accretive for the company.
- Markets are likely to operate both ways and expected to be volatile. Look at pharma stocks for positive traction.
