Indian Markets likely to move on global events - Microsec

Indian market is likely to move on global events which has turned jittery in the past week as china post lower than expected PMI and US spending cuts plan still hanging in indecision. The outcome of the Indian Budget is more or less discounted in the market with trading perspective.

However, from Investment perspectives, we believe oil & Gas sector may find interest from investors as the government has emphasized on energy security of the country. The current plans to change from profit sharing to revenue sharing and other measures may encourage companies in the sector to invest in oil and gas exploration. Hence we believe the sector on the whole is likely to be rerated. RIL, ONGC, BPCL, HPCL, Petronet LNG, Engineers India are long term picks in the market.

Based on positive announcements in the budget, we believe, Dredging Corporation of India and LMW are also long term picks. However, the recent fall in some blue chip stocks like HUVR, L&T, IL&FS Trans, NBCC are good bets with trading and investment perspectives. Looking at the all round appeal to cut interest rates, it is imperative that RBI cut repo rate by at least 25bps in the March 19th RBI Policy. Hence Nifty may move in the 5700-5900 band for the week.

Source : Equity Bulls

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