Focus on YES Bank, IndusInd Bank; key thing to watch out for

Bull market or bear market?
Markets have still not recovered from the trauma of IL&FS crisis. Rising yields and ALM mismatch will continue to put pressure on NBFCs and especially HFCs. Besides, the US-China trade war and rising crude prices may lead to depressed returns over the next couple of months.

Stocks likely to be in limelight today?
YES Bank and IndusInd Bank will be volatile, considering today is the expiry. The key thing to watch out will be the percentage rollovers in the market.

Sectors likely to impact market today?
Banking, NBFC and HFC will be under pressure, in case of a rollover are low or there are more jitters from the CP market.

Your mid-term view?
Maintain a cautious stand on the market with a positive bias towards pharma, IT and other export-oriented sectors.

What drove markets on Wednesday?
The market was stable relative to expectations which led to a significant reduction in premiums.

Abhimanyu Sofat, head of research, IIFL

Source: DNA Money