• The Rs.27,000 crore loss reported by Tata Motors took the stock markets sharply down. The markets also saw the overhang of global slowdown reality after the EU warned of slowing growth across the EU region.
  • The ADAG fracas has not gone down well with the markets with stock across the group taking a huge hit. One cannot forget the systemic risks with Reliance Capital having AUM of over Rs.3 trillion under the aegis of its mutual fund!
  • FIIs were net buyers to the tune of Rs.844 crores while DFIs sold Rs.(-960) crore on Friday. FIIs may be a bit wary of buying into India debt after the rate cut as it takes away the relative attractiveness of Indian yields.
  • US markets were flat but European continued to be under pressure after downgrading growth across the EU region. SGX is in negative and the Chinese markets will reopen this week after a one-week holiday.
  • Bajaj Finance at the 2700 levels may be a play on intrinsic strength and also on the vast consumer accretive business of the company. We target Rs.3200 on the company in the next one quarter.
  • On Friday we had stuck our neck out and said that the sharp correction in Tata Motors on Friday should be used as a buying opportunity. We reiterate our stand that at these levels, the downside risk is very limited.
  • DLF remains our top bet in the realty space after a fairly positive budget. With the company likely to go zero debt by March end, one can accumulate the stock at Rs.165 for targets of Rs.210 in one quarter.
  • With the markets reacting to the Tata Motors one-time write off, we could see the markets again bouncing from lower levels. Play accordingly.