- The trade is not just between the US and China but EU too has entered the fray by imposing 25% tariffs on a host of American products to the value of $3.2 billion. A lot will now predicate on how the quantum increases.
- Markets on Thursday are likely to be cautious for two reasons. Firstly, there is the OPEC meet coming up at Vienna over the week end. Secondly, the trade war is not a very good sign for the Indian Rupee.
- FIIs were net sellers to the tune of Rs.(-2,443) crores while DFIs bought Rs.1474 crore on Wednesday. There were a good chunk of bulk deals but there seems to be strong institutional selling ahead of the trade war.
- Markets across the world are lacklustre. The NASDAQ has shown strength and that should be good news for the Indian IT sector. SGX is flat and pressure could mount depending on how Asia pans out.
- We reiterate our buy call on HPCL with targets of Rs.400 in the short term. The OPEC meet is likely to veer towards greater supply and crude may get closer to the $70/bbl mark. That reduces the subsidy worry for government.
- With strong demand from the US market, one can again look at picking Bharat Forge at lower levels of 620-630 for targets of Rs.700 in one quarter. Stock looks poised for higher level on an upturn in demand.
- With the zero debt deadline of DLF coming up in the next 9 months, the stock appears to be quite reasonably priced at Rs.201. One can buy with a target of Rs.250 in short term and Rs.300 in medium term.
- Markets continue to be in uncertain zone and that worry may continue till the time the overhang of the trade war and the OPEC meet remains.
