Market Headstart: Nifty likely to open lower; 3 stocks which could give 5-10% return

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 37 points or 0.31 per cent. Nifty futures were trading around 12,044-level on the Singaporean Exchange.

The Nifty50 is expected to open flat-to-lower on Thursday following muted trend seen in other Asian markets as investors feared a looming U.S. trade war with Mexico would further depress global growth.

Wall Street had ended Wednesday in the black helped by speculation the Federal Reserve would have to cut interest rates as insurance against a tariff-driven slowdown, said a Reuters report.

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 37 points or 0.31 percent. Nifty futures were trading around 12,044-level on the Singaporean Exchange.

All economists on the CNBC-TV18 panel unanimously voted for a 25 basis points rate cut and four of the five members expect the RBI to keep a 'neutral' stance. The RBI's next monetary policy will be announced on June 6.

The Indian rupee Tuesday settled unchanged at 69.26 against the US dollar in a lackluster trade as participants preferred to sit on the fence ahead of the RBI monetary policy outcome on Thursday.

On the institutional front, FPIs were net sellers in Indian markets for Rs 416 crore while DIIs were also net sellers to the tune of Rs 355 crore, provisional data showed.

Stocks in news:

Rating agency Crisil has downgraded commercial papers (CP) issued by debt-laden Dewan Housing Finance Corp Ltd2 to ‘default’ or ‘D’ category from A4+ after the company missed an interest payment on its non-convertible debentures (NCDs) on Tuesday.

Drug firm Aurobindo Pharma June 4 said it has received 10 observations from the US health regulator for its Unit 3 in Hyderabad.

Rate-sensitive stocks will be in focus throughout the day as MPC is likely to slash rates by 25 bps.

Rating company CARE has cut the creditworthiness of entertainment firm Eros International Media (EIML), citing delays or likely defaults in serving debt availed from banks.

Technical Recommendations:

We spoke to Religare Broking and here’s what they have to recommend:

Dabur India Ltd: Buy| LTP: Rs 405| Target: Rs 430| Stop-Loss: Rs 394| Upside 6%

CESC Ltd: Buy| LTP: Rs 778| Target: Rs 820| Stop-Loss: Rs 738| Upside 5.4%

For more details and recommendations contact us @RIPPLES ADVISORY