News and Impact
Expect market to open on a positive note on account of global cues. Asian stocks and U.S. equity futures climbed in the opening after President Donald Trump suspended his plans for tariffs on Mexico. US Dow gained over 1.7% on hope of rate cut by US Fed after reported poor job data and reduced trade war tension between US and Mexico.
Mexican peso jumped the most in almost a year after the U.S.-Mexico agreement that was unveiled late Friday. Japanese, Hong Kong and South Korean stocks climbed 1% each, as did crude oil prices. Chinese markets re-opened positive note after a holiday on Friday, when People’s Bank of China Governor Yi Gang said in an interview that there’s “tremendous room” to ease monetary policy if the trade war deepens. SGX Nifty is up nearly half percent. US Future gained 0.2%.
This week, market trend will be determine by the monsoon progress. May CPI data and recent credit risk issue by the NBFC. These factors will be important for the market. Moreover, new government policy related issue (Infrastructure, Housing for all, Smart City) will be also important factors. Among the micro factors like US-China trade issue and US-North Korea political talks also important for the global market. Agenda of G-20 Meeting on global growth and trade issue will be important for the global market.
Major news – Monsoon hit in Kerala despite a one week delay. Hope of monsoon will spread other part of India in the next few days (Watch on tractors stocks – Escorts, M&M), heavy losses on ADAG group companies (RPower), L&T open offer on MindTree of 1% higher (17-28 june – Open offer). GST Council meeting on 20th June.
Expect PSU Banking stocks will be positive after the RBI new rules of NPA of defults from 1 day to extend 30 days – We are positive on SBI, BoB.
Nifty gained marginally on Friday but good quality stocks like Voltas (gained over 5% with hefty volumes of 44 lakh shares on NSE), ICICI Bank, HDFC Bank, IndusInd Bank and Bajaj Finance (All time high) gained over 1% each. On the other hand, volatile/speculative stocks like Dewan, PC Jewller, ADAG group, Adani Group stocks declined. It means good quality stocks or strong fundamental stocks always give you adequate return despite any upside or down side in the market. Patience shares holders always take opportunity to buy on good quality stocks like HDFC, HDFC Bank, ICICI, Axis Bank, ACC, UltraTech, Maruti, Kotak Bank, SBI, RBL Bank
Brokers Radar – Morgan Stanley ITC Overweight – Raised TGT to 360 from 320, Deutsch Bank Tata Motor TGT 175, Jefferies HUL TGT 1820. Deutsch Bank positive on Bank after RBI new circular
Sector watch – Banking & NBFC, Auto, Tech and Metal
Actionable – ICICI Bank, Maruti and Kotak Bank
