- The Nifty level of 11,000 now looks like a formality considering the momentum that the market has shown in the last few days. Consumer stocks have driven the markets higher ably assisted by private banks.
- Consumer stocks like Jubilant Foods, Hindustan Unilever and Britannia appear to still have legs for another 10-15% upside as rising rural demand and higher purchasing power is likely to re-rate these consumer driven stocks.
- FIIs were net buyers to the tune of Rs.1568 crores while DFIs sold Rs. (-462) crore on Monday. Domestic funds are staying liquid ahead of IPOs but FPIs appear to be on the buying side in a big way in markets
- Most of Europe and the US markets are in the green and the global rally appears to be riding on higher GDP growth projections by IMF as well as the US tax cut story. The SGX Nifty is already close to the 11,000 mark in late trades.
- We expect a big benefit from the budget’s rural focus to companies in the fertilizer and agrochemicals space. We suggest buying Chambal Fertilizers, Tata Chemicals and Rallis at current prices for upsides of 25-30%.
- If there is one stock to bet on considering its very unique last-mile data positioning, it is Vakrangee. The stock looks headed towards the Rs.550 mark and over the longer term could end up much higher.
- We have been expressing concerns over Bharti Airtel valuations after the Tata Tele acquisition and the recent results confirm that. Be prepared for 20-25% downsides on the stock and play with short futures and with long put options.
- We are not recommending fresh stocks, although Vakrangee could be a good investment bet even at these levels.
