The year ahead : What’s in store for 2018?

There was a break in updating this site due to personal reasons. I am overwhelmed by the enquiries that came from my readers soon after I stopped updating the site. Thanks to one and all. It’s New Year and Share market school is back.

Without doubt, 2017 was a very good year for Indian stock market investors. In fact, most of the global markets have recovered well in 2017. As far as indian markets are concerned, the BSE Sensex and the NSE nifty has delivered returns of roughly over 30%. Over 130 stocks have doubled between January and November 2017 against just 13 in 2016. The general view is that the markets will continue its bull run in 2018 too. However, given the spectacular returns in 2017, one should be expecting a more tampered rate of return in 2018 – a 15% to 20% return would be ideal for the indices. The bad effects of demonetization and GST are expected to fade away and the economy is expected to settle. The 1st week of 2018 would start with the auto sales numbers for December and it’s also the start of the earnings season for 0ctober-December quarter.

Although everything seems to be alright, there are some concerns too- The risk of high crude oil prices and high inflation is back. The Brent crude oil prices have hit USD 65 and it’s expected to hover around that range. Should the prices move up again, it would be a cause of worry for the markets.

The market participants also seem to have already discounted most of the positives of 2018. As such, it should be borne in mind that any upward movement would come with the possibility of downward corrections. Corrections are likely to happen in 2018 and these should be utilised for adding up stocks to your current stock portfolio. One sector that experts focus in 2018 is banking. The current issues of cleaning up balance sheets will be over in 2018 and that will result in a good show from this sector. Apart from banking stocks, auto ancillary and housing sector are the other two sectors which are expected to give good returns to the investor.

There are a lot of queries on investing in Bitcoins and other crypto currencies. At present in India the RBI or the SEBI has not given any licence to anyone to trade in bit coins. These online currencies are not backed by any assets and do not have any intrinsic value. Its pure speculation that’s driving the prices up. Hence it is advised to stay away from these investments.

Share market school wishes it’s readers a very happy and prosperous 2018.

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