- Zee stocks corrected sharply on Friday after there was news of SFIO raids on one of the group NBFCs of the Essel Group. There was also selling of pledged shares over expected default on loans. The group may hold the key to the markets.
- Zee and L&T may open the doors for the debate over corporates transferring debt to the books of group NBFCs. That could be the one theme that will come under pressure in the months to come.
- FIIs were net buyers to the tune of Rs.689 crores while DFIs sold Rs.(-147) crore on Friday. It remains to be seen how the FIIs react to the Zee story and the post Fed meet scenario on February 01st.
- While the US and European markets were strong on Friday, most of Asia has opened flat on Monday. While the SGX is in positive territory, a lot will predicate on how the Zee story pans out during the day.
- There has been a lot of debate over the Zee stock. We have been negative on the stock since the levels of 450 over serious corporate governance issues. Any bounce in the stock should only be used to sell the stock.
- With the boost to the consumer segment likely in the coming months, we are positive on Havells at the current price level of Rs.710. We target Rs.800 on the upside in one quarter.
- Expect short covering on Maruti this week being expiry. We expect the stock to bounce to around the 6700 levels during the week. One can look at a short term trade on the stock.
- While the global cues are still positive on the stock we expect the Zee story to have a bearing on the markets for the day.
