- Weak cues from global markets led the Nifty sharply down by over 100 points on Wednesday. The Moody’s warning that PSU banks could get downgraded also worked against the market overall.
- The US markets saw a virtual carnage as tech stocks crashed on the back of heavy selling on Tuesday. The selling is likely to have an impact on technology stocks in India and most of the frontline stocks could come under pressure.
- FIIs were net sellers to the tune of Rs. (-753) crores while DFIs sold Rs. (-44) crore on Tuesday. This was a turn on sentiments for FIIs who have been net buyers almost through November. Pressure on domestic funds is a lot steeper.
- Tuesday saw a virtual carnage across the US, Europe, and Asia. European markets ahead of the BREXIT decision while the US markets have been wary of tech stocks which have seen valuation based selling. SGX Nifty is virtually flat.
- We see IndusInd Bank at around the 1550 levels with most of the IL&FS risks factored into the stock. We see an upside potential of up to Rs.2000 on IndusInd as growth and asset quality remains largely intact.
- With consistent upgrades on the back of its gas business, GAIL could be the stock to watch out for. The stock does look reasonably priced at around Rs.340 levels and has to potential to touch Rs.380-390 in the next quarter.
- One can take a contra bet on Dish TV as the company could be a beneficiary of the overall restructuring of the group and stake sale to a global media giant. At Rs.38, the downside risk is quite limited for investors.
- Global cues will be the key on Wednesday. Trades will be subdued due to two clearing holidays and a trading holiday on Friday.
