- Sensex scaled the 39,000
mark as it completed 40 years in the Indian market. The buying was led bybeaten down stocks like Tata Motors and Bharti as portfolio allocations were shifted around and rotated in the New Year.
- We were mentioning about the crack in Zee stocks and we expect the weakness to continue on the stock. All the Zee group stocks could see deep cuts as valuations of the stock needs to be brought to a more palatable level.
- FIIs were net buyers to the tune of Rs.543 crores while DFIs sold Rs. (-438) crore on Tuesday. The momentum of FPI flows appear to be petering after a robust flow of nearly Rs.50,000 crore during the month of March.
- There was visible strength in markets across Europe and in the US and Asia too. Europe is now betting on a longer period for
reconciliation of the EU problems. SGX Nifty is already quoting above the 11,800mark .
- With a new CEO in place and the worst bottoming over for auto stocks, one can look at Eicher Motors closely. At around Rs.20,500, the stock does offer good value with an upside target of nearly Rs.24,500 in the next
one quarter.
- We continue to be positive on Yes Bank, which had started recommended from around the Rs.220 levels. We have a target of Rs.350 on the stock on the upside and expand the stock to cover the range in
next one quarter.
- We see the stock of Tata Motors showing faster turnaround after better numbers from JLR came in. We expect the stock to scale levels of Rs.250 in the next
one quarter as it makes up for a long period of underperformance. - We expect the portfolio rotation and shifting in
favour of auto and metals to continue for some time. Position yourself accordingly.
