SNI MARKET OUTLOOK UPDATE 08TH OCTOBER 2013 : Expect market to open on a positive note. The RBI lowered the MSF/Bank Rate by 50bp to 9% from 9.5% earlier. It also introduced a term Repo of 7‐day and 14‐day upto 0.25% of NDTL, i.e., around INR200b, to be conducted on each Friday through a variable auction route. This would continue to ease money market rates and would have a moderating impact on G‐sec yields (10‐yr G‐Sec yield closed at 8.65% today) as well. Top picks are: ICICIBC, HDFC and Bank of Baroda. Preferred bet names are YES, AXSB, LICHF and OBC. US market fell over half percent as Government shutdown is in day 7,and lawmakers appear no closer to resolving the impasse. Asian markets are exhibiting Research Updates: BANK OF BARODA: Balance sheet levers to withstand macro pressures; cautious approach in uncertain environment; Upgrade to Buy ‐ BoB’s is down 11% since RBI tightening started and has underperformed Nifty by 9%; however on relative basis it has outperformed its peers by 10‐20% (ex‐SBIN in‐line) which depict its better fundamentals. Our recent interactions with top management about asset quality and levers for earnings further instills confidence about gradual improvement in operating parameters ahead, which could drive out performance. We upgrade our recommendation from to BUY from Neutral For more details log on to sainathinvestment
Posted on: Tue, 08 Oct 2013 03:35:55 +0000
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