Indian Hotels, NALCO among Ajit Mishra's 3 stock recommendations for today

Indian equities weakened on Thursday, with the Nifty declining 0.76 per cent after the RBI raised rates and flagged a higher inflation outlook, while global macro risks also hurt sentiment. Ajit Mishra named Indian Hotels and National Aluminium among three stock recommendations, although details of the third company were not provided. Indian Hotels closed at Rs 724.60, down 0.9 per cent, while National Aluminium ended at Rs 315.80, down 1.7 per cent. The hotel sector lost 1.2 per cent over one month, while metals and mining fell 6.3 per cent.

A rate increase may raise financing costs, restrain discretionary spending and reduce valuation support, leaving hotels and other rate sensitive businesses exposed. Indian Hotels could also be affected if weaker sentiment feeds into travel demand. Metals and mining face an additional global growth channel, since softer industrial activity may weigh on commodity demand and pricing. National Aluminium has lagged its sector over one month, with a 12.2 per cent fall against 6.3 per cent for metals and mining. Further weakness in demand and persistent inflation would confirm the cautious reading, while easing price pressures, stronger consumption and improved global conditions would weaken it.