The week ahead – on a choppy note…by J Victor on May 23rd, 2016
It was a dull week for stock markets as the initial positive start was lost mid-way due to fears of rate hike by the Fed. The benchmark indices the Sensex and the Nifty ended at 25,302 and 7,750 down approximately 0.80%.
The result season has been a mixed one with most of the public sector banks delivering poor results. The numbers of SBI will be keenly watched this week and may also influence the market movement. Other corporates coming out with results include BPCL, Tata Power, Cipla, Tech Mahindra, Bajaj Auto, GAIL, Tata Steel, Larsen & Toubro, Bharat Heavy Electricals and Coal India. Apart from this , the May derivatives would come to an end this week and hence there are more chances of volatility in the markets.
However the long term view of Indian markets still remains strong. Normal or above normal monsoons will change the present course of the market. Already there are many hints of better days to come – for example the cement manufacturing is at 18 month high , Diesel consumption is at 4 year high , truck sales are at 4 year high and the two wheeler and tractor segments are also showing signs of recovery. Indirectly all these numbers point towards a slow and smooth recovery of the economy in two or three years. So keep investing in good companies at these lower levels and wait for the good times to come.
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