- The trade war took its toll on the US Dow and on other Asian markets and that is likely to weigh on the Indian markets. Expect a cautious start with pressure at higher levels.
- The INR could come under pressure today after it became clear that China could attempt the strategy of weakening its currency to counter the threat of US tariffs. This could be bad news for INR and for Indian markets.
- FIIs were net buyers to the tune of Rs.199 crores while DFIs bought Rs.87 crore on Monday. Institutional trading volumes were thin but a weaker rupee could put pressure on FII flows
- Stock markets across the world crashed after it became clear that the trade war may go on much longer. The SGX Nifty is also weak in early trades and may dip below the 10,700 mark in trades today.
- 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 crude prices headed below $70 in the short to medium term, could see end users like paints benefiting. By Asian Paints around Rs.1,265 mark for targets of Rs.1,350 and Rs.1,400 in one quarter ahead.
- As of now we are just reiterating our calls on the oil beneficiaries like downstream and paints. We also suggest buying Nifty puts at current levels to protect your portfolio from any sharp corrections in the market.
- The big focus will be on the trade war and its repercussions on the global currencies. INR is specifically vulnerable considering its CAD.
