- The Moody’s outlook downgrade of India and the global economy is likely to weigh on the Indian markets on Wednesday. The impasse in Maharashtra will also be negative as it continues to be the hub of the financial sector in India.
- After Nomura, SBI has also downgraded second quarter GDP to 4.2% raising doubts over full year growth. Most high frequency indicators, according to SBI, are showing a distinct slowdown including the core sector growth and IIP.
- FPIs were net buyers to the tune of Rs.664 crore while DFIs sold Rs.245 crore on Monday. FPIs have infused close to Rs.13,000 crore in the month of November till date in debt and equity put together; close to the full month inflows in October.
- Most of Europe and even the US were in positive territory but the Asia continued to be under pressure over lack of clarity over what Trump meant when he said that the trade deal was close but refused to divulge further details.
- Lupin is likely to be a good buy at these levels despite tepid results in this quarter. The sale of its business in Russia is likely to be value accretive for its overall valuation and one can buy around Rs.735 for targets of Rs.790 in 1 quarter.
- One can again start to sell Zee around the Rs.300 levels as the stake selling in the market is likely to come from VTB of Russia and other mutual funds. One can target Rs.250 and Rs.230 on the downside on the stock.
- RBL Bank has been under pressure after the implosion of Café Coffee Day and its exposure to that group. However at Rs.340, the downside risks are surely limited and one can look at phased buying for targets of Rs.400 in one quarter.
- Markets may see some fresh buying as it comes back from a trading holiday. Metals may be the space to watch out for on China stimulus.
