This is going to be a holiday shortened week .The markets will be closed on 26th Jan for the republic day. The broader indices – Nifty and the Sensex – closed at 27035 and 8349 respectively signalling indecision over the direction of the market.
Going ahead, this week also looks like a more turbulent week due to the following reasons –
- The markets will be keenly watching US president’s Donald Trump’s words to get an idea about what’s in store in the near future.
- Q3 results in India which is not likely to spring many surprises.
- Holiday shortened trading week.
- January Derivatives expiry
- Upcoming budget.
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.
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.
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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