- The sharp spurt in SBI helped the Nifty to close higher above the 10,530 mark. Although the results had reported higher losses, the markets were betting on a bottoming out of the NPA cycle at SBI.
- PSBs led by SBI, PNB and BOB could be the big beneficiaries of the NCLT process which will enable write backs to the tune of Rs.1 trillion for Indian banks. One can look to bottom fish in these banks and current levels.
- FIIs were net sellers to the tune of Rs.(-1652) crores while DFIs bought Rs.1497 crore on Tuesday. The FII selling was largely driven by block deal transfers to the domestic institutions but global worries remain.
- While the US and Europe were flat to positive, the Asian markets have come under pressure on worries that the North Korean issue may not resolve too easily. The SGX Nifty is trading marginally in the negative in early trades.
- DLF could be the stock to watch out for with a 66% jump in net profits. The debt reduction is finally paying off and despite a lower portfolio, the company promises to get debt-free by March 2019. Buy with target of Rs.260/-.
- With the stock of Tata Motors around the 300 mark, it offers good value for money at current levels. The stock offers a 25% upside from current levels on the back of robust JLR numbers and a pick up in the domestic business.
- One can look to selectively start picking up the oil marketing companies where the burden of subsidies does not appear to be as high as before. It was expected that higher crude prices may put pressure but the burden is being passed on.
- The overall scenario is still volatile due to the combination of oil and rupee and traders will have to trade cautiously in the current market.
