Tit - bits

On Tuesday, the Dow Jones swung nearly 1,400 points from its low to its high point over the course of the day. At one point, the index was down by 997 points. However, it recovered and finished down 786 points, or 2.9%, retracting Monday's buoyant rally, during which it recorded its best-point gain in history.

The sharp fall came after the US Federal Reserve slashed interest rates by a half-point to help insulate the US economy from the global coronavirus outbreak.

It's is to be remembered that lower interest rates are good for stock market as it makes borrowing cheaper, giving a forward kick to credit growth. Also, USD normally falls when interest rates come down. This could ease global growth concerns and also help stem the further depreciation of INR. The US markets have only adjusted to the mean value after that whirlwind rally on Monday.  

Though this fall in Dow along with NASDAQ, the latter nosediving to 8,684.09 or down by 268.08 points (2.99%), will not have much effect on Today's domestic bourses, but we need to be cautious in some sectors which I had already mentioned in my last post, I mean, especially, Construction, Real Estate, Metal, Tourisn, Hotel and Gems & Jewelry companies.

I'm positive on Auto, Power, Chemicals and Speciality Chemicals, Textile, Petrochemicals, Alcohol, FMCG, Agro and fertiliser companies. 

After the US Fed's emergency rare cut,  I have turned neutral on Banks, NBFC, and IT sectors. 

#The next month could bring two superb gifts for the fertilizer and Agro-chemical stocks: news of Urea Decontrol and a massive 25% cut in the gas prices - remain invested in good fertilizer scrips like Deepak Fertilizers & Chemicals (Rs. 90.80), RCF (Rs. 38.15), Chambal Fertilizers (Rs.139.75), National Fertilisers Ltd (Rs.22.55), Zuari Agro Chemicals (Rs.74.85), etc. 

#Buy the shares of Tata Motors Ltd at around Rs.129/130, for short term targets of Rs.151/156. The fall in Crude Oil Prices will help the overall growth of the sector.  Moreover,  the government is working on a mix of regulatory and incentive mechanism to roll out the country’s first ever vehicle scraping policy from 2020, which will phase out all vehicles more than 15 years’ old. This is likely to give a new life to the moribund auto sector.