Nifty manages to close last week unchanged - Microsec

Indian market movement were influenced on further decline in INR vs USD, spike in Brent Crude which touched $118/barrel last week on fear of US intervention in Syria and improvement of US economic data which heightened US Fed tapering of QE3. However, being the F&O closing week, Nifty managed to close the week unchanged.

India's GDP growth for quarter ending June 2013 were 4.4%YoY, lower than previous 4.8% in previous quarter and Bloomberg consensus estimates of 4.7% and our estimates of 4.5%. In the midst of all round condemnation on the recent economic crisis, we hope some measures may be taken to bring some business confidence back.

Government sale proposal in Balco & Hind Zinc, export of iron ore and clearance of infrastructure projects are some measures taken last week. We believe the Food Subsidy bill and Land acquisition bill are both inflationary and direct beneficiaries would be rural class.

Hence we remain positive in FMCG sector, which is also benefitted largely on better monsoon this year. We recommend Dabur, Britannia, Rallis, LICHF for medium and long term portfolio. NMDC, Tata Steel and Hindalco can be bought on decline. Select PSU Banks like Syndicate Bank, PNB, Bank of Maharashtra and Indian Bank may give short term returns of 10-12% based on high dividend yields and low valuations.

Source : Equity Bulls

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