- With the US and China moving more decisively towards a trade truce, global markets showed signs of celebration. The situation on UK voting will also be much clearer by the end of Friday and that is likely to drive the markets.
- Indian markets may be under pressure on Friday due to a double shocker from IIP and CPI inflation. IIP showed negative growth of (-3.8%) while inflation stood at a 40-month high of 5.54%. That almost rules out rate cuts in February.
- FPIs were net sellers to the tune of Rs.684 crore while DFIs bought Rs.810 crore on Thursday. FPIs have been net sellers in December in the first two weeks after 3 months of consistent positive inflows into equities.
- There were positive sentiments in the US and Europe on trade deal hopes. Nikkei is also sharply up in early trades and the SGX Nifty is showing hints of the Nifty settling above the 12,000 mark once again. Macro data could be a challenge.
- Tata Steel could see positive momentum continuing on Friday with the hopes of a full-fledged trade truce now looking likely. A Chinese stimulus will only add heft to steel demand. Buy around Rs.415 for targets of Rs.440 in one month frame.
- Despite the sharp rally, Mannapuram Finance may be a good long bet at Rs.165 with upside targets of Rs.190 in the next one month. The Stable business model and strong gold prices are likely to help the stock move higher.
- One can expect further pressure on Infosys on the latest class action suit initiated by Schall Law Firm. However, the case appears weak and one can use lower levels of around Rs.680 to buy into the stock for the long term.
- Data on inflation and IIP could stall further rate hikes. The impact could be felt the most on the rate sensitives like banking, NBFCs and real estate stocks.
