Banks Shine In The Pre Budget Rally; Market Positive
Jan 27, 2017 | 17:48 PM IST
Jan 27, 2017 | 17:48 PM IST
Market This Week
On the last day of last week NIFTY and Sensex mildly corrected, ending close to 8350. Since then pre budget rally has taken markets to the levels above 8600 to close at 8641 this Friday. Overall Nifty was up more than 3.5% this week. Indian markets outperformed this week compered to most of the other markets across the globe. Domestic institutional investors (DII) supported market again which they have been doing since last 1-2 months. However for last 2-3 days Foreign institutional investors (FII) too have participated, which led to a strong rally on Wednesday 25th January.
Movers & Shakers
Some of the top performing private banks posted good set of quarterly numbers. Banks such as Yes bank, Kotak Mahindra, HDFC Bank, RBL Bank reported good numbers. Other stocks such as Maruti, Zee Entertainment and Asian Paints too chipped in. The results did not show much fall in overall income and profitability which was expected due to demonetisation. Positive results led to buying in markets and cheered overall investors' mood. Also, NBFC stocks such as Bharat Financials, DHFL, Indiabulls Housing showed good set of numbers. Surprisingly demonetisation did not have any impact on these companies.
Key Market Drivers
Till budget, markets are expected to remain in range due to strong rally this week with overall positive bias. Once the budget event is over, then again markets are expected to pick up trend, mostly positive, unless government disappoints in budget with too much of populism or FII related tax fears. Both union budget and rail budget will be watched closely by the investors as it will determine where market heads in the next quarter.
Event Watch
The major event this week is union budget along with rail budget on 1st February. The expectations of the investors are quite high as minimum tax limit hike, 80c investment limit could be raised to certain extent to boost domestic investments and improve consumption story. Also, government can think about lowering of corporate taxes to improve overall sentiment of investment. Sectors such as housing, infrastructure, agriculture related sectors, banking and finance related sectors could benefit from the government policies.
Stock To Watch
ICICI Bank and Adani Ports are on up side while ITC is on down side.
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