• Birla group stocks like Hindalco, Grasim and Ultratech were the key drivers of the market on Tuesday as they ended up among the top gainers. Focus continues to be on the consumer-oriented stocks.
  • Oil could be the macro indicator to watch out for as oil stockpiles in the US touched a multi-week low. India has a lot to worry on the oil front as trade deficit scales $16 billion in June and 75% of India’s crude needs are imported.
  • FIIs were net buyers to the tune of Rs.104 crores while DFIs bought Rs.514 crore on Tuesday. The global trade war and the crude prices may determine the direction of fund flows from here on.
  • Markets across Europe remained strong even as the Dow Jones was up by almost 1% after Trump promised a package of $121 billion to help US farmers who are being hit by the Chinese retaliatory tariffs on American food imports.
  • With lower rates of GST and its willingness to pass on the benefits to the consumers, paint companies see 10-15% growth in sales. Stocks like Berger and Kansai Nerolac could have 15% upside from current levels on pent-up demand.
  • 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%.
  • With bad loans of the banking system touching $150 billion, the bottoming out of the NPA cycle may still be some time away. The divergence between quality private banks and PSBs may only widen going ahead.
  • While the Nifty is likely to hold the 11,000 mark, traders need to watch out for the trade war and the impact of Iran sanctions. It is better to hedge positions.