- The markets closed almost flat on Monday as the trade deal showed signs of getting delayed on the back of unwillingness of Beijing to go ahead unless the old tariffs were unwound. The US has already extended the license of Huawei.
- Weak oil prices could work in the favour of India as the delay in the trade deal is putting pressure on oil. India has already seen its oil import bill coming down in October by nearly 30% and that is helping the trade deficit.
- FPIs were net sellers to the tune of Rs.271 crore while DFIs bought Rs.309 crore on Monday. FIIs appear to have turned cautious in the last few days after the relentless flow of nearly Rs.19,200 crore into Indian equities in November.
- US and European markets came under pressure and Asia has also been under pressure due to the trade deal delay. The SGX Nifty is also weak in early trades and the deal progress will be the key to market movements on Tuesday.
- We continue to stay positive on PSU banks that have benefited sharply post the Essar judgement. We like stocks like SBI that have been in positive territory after the news that they could recover close to Rs.13,000 crore from Essar.
- We had recommended Glenmark yesterday and the stock was at 21% upper limit. However, that may have extended the short term potential of the stock and it would still be a good stock to keep accumulating at dips.
- Long term investors can look to accumulate UPL at around Rs.550 levels for targets of Rs.610 in one month. Debt levels continue to be a major challenge for the company post the acquisition but at these prices, negatives may be factored in.
- Watch the progress on the trade deal front and any good tidings could be positive for the stock markets in the near term.
