Market Analysis

The week ahead: Trump’s speech to set the tone..

The Indian stock markets closed the first week of 2017 n a positive note as there was some good news from around the globe and lesser than expected effect of demonetization. The benchmarks – Sensex and the Nifty  - closed 133 and 58 points higher respectively at 26626 and 8186 giving some hope for the investors in the new year.

Going ahead, the main factor that can impact emerging markets including India would be US president-elect Donald trump’s stimulus plans that are expected to kick off more jobs in the US. His policies are likely to take the world economy for a turbulent ride in 2017. One of the most feared factors is the possible rise in fed interest rates that could make the dollar stronger against the Indian rupee. This would mean good times for he export industry but it would also mean lesser foreign investor inflows into the country which will affect the economy in a big way.

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The week ahead: Tread with caution..

Decline in November auto sales numbers, weak Nikkei PMI for November, continued FII outflows and keenly awaited RBI policy meet kept the markets volatile last week. The benchmark Sensex and Nifty closed at 26,331 and 8087 after an initial up move. Many more factors such as absence of any positive triggers, stability of euro zone and continued stand-off in parliament keeps the investors concerned over the near term prospects of the markets. Hence caution becomes the buzz word for this week.

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The week ahead : more volatility on cards ..

The Indian markets closed in red last week owing to unexpected de-monetization, surprise US election results and weak macro-economic data. The Sensex and the nifty ended 444 points and 135 points lower at 26,830 and 8,296. As expected, high volatility was seen in almost all the counters.

Going ahead, the investors will be on edge since Mr Trump will take charge only in January 2017 and there is no clue as to what steps he will be taking in order to clamp down on imports of goods and services, as expected by the world economy.

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The week ahead: Markets on a slippery road…

The tight run up to the US election and US investigation into Indian drug companies resulted in the markets recording the second highest weekly fall this year. The Sensex and the nifty ended 656 and 195 points lower to end the game at 27274 and 8434.

Going ahead, the second quarter results season is here and more stock specific action can be witnessed at the bourses. ICICI Bank, SBI, Bharat Heavy Electricals, Lupin, BPCL and Mahindra & Mahindra will be in focus this week as they announce the second quarterly numbers. More events are likely to unfold in the Tata – Mistry episode and this will impact Tata counters. In general, the volatility that we experienced last week is likely to continue this week too. Investors may watch out the dollar rates , oil prices , IIP numbers and FII flows to get an idea about the market mood.

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