Market Back In Green; 'Acche Din' For Investors

Dec 30, 2016 | 05:04 PM IST

Market This Week

This week market, on Monday, touched its 6-7 months’ low levels at of 7,893 and closed at 7,908. However in next 3-4 days market witnessed good pullback to close at 8,185. From the lows of this week, Nifty gained around 280-85 points in last 4 sessions. Thanks to strong DII buying supported the market witnessed good upswing. FII still remain sellers but gradually selling figures are coming down. In the last session of 2016 market showed signs of recovery.

Movers & Shakers

The overall bad news of slowdown and FED rate hike were some of the reasons to market was flat last couple off weeks. From here onwards the markets will start taking cues related with Union Budget which will happen on 1st February 2017. Also, PM Modi might make some announcement in his speech on Saturday which might spell happiness for the businesses and investors.

Key Market Drivers

2016 was a year of surprises for market in India as well as globally. From Brexit to U.S elections to demonetisation all the major global events pulled the market down. It will be safe to say that 2016 was extremely volatile. From level around 7,950 on 1st of January 2016, Nifty went further down to 6,800 in the following month on a budget day 28th Feb 2016 and then bounced back to around 8,900 levels in next few months. Then throughout the year it went through several ups and downs due to various reasons and finally closed at 8185 this week.

Event Watch

The year was full of surprises, in the first 2 months due to crude oil price drop, Fed rate hike and FII selling. Indian markets witnessed extreme selling pressure and post budget FII again turned net buyers for next few months and took the markets on the higher level. Then there were events such as Brexit, Donald Trump victory, Surgical strike on Pakistan. On these all events markets were extremely volatile. But post Brexit day and Surgical strike day markets pulled back sharply and buying was recorded in the market. But as demonetisation and Trump victory happened on 8th November the markets was unable to recover due to fears of slowdown in the economy and slowdown in corporate earnings. Fed rate hike also came in and spooked the markets a bit and it led to the selling of FII's.

Going forward, from the hints given by Finance Minister and other officials it looks like there is a possibility of Tax rate cuts for corporates as well as individual taxpayers. In the upcoming budget government is likely to focus on infra, agri and housing related sectors and hence stocks from these related sectors might see a pre budget rally in coming weeks.

Stocks To Watch Uflex and Kwality is on upside

 

ABOUT AUTHOR

Niveza Research Desk : We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells everyday to a pave a smooth road for our clients in the shaky world of stock market. While...
FULL BIO

LEAVE A COMMENT

RECOMMENDED READING

Nifty held By Idea And Vodafone Merger

Share Market News - 27th February, 2017: Stock market opens positive but bears snap the winning streak. The Sensex lost 80.09 points to 28812.88 Nifty 42.8 points to 8896.7 Reliance gained 4.63% to 1237.0
Read More>>

Money Management - Shaken Not Stirred

What is money management? You may say spending responsibly and saving wisely. Though that definition sounds true, it doesn't show the real picture. Money management is not merely paying monthly utility bill and saving the surplus money. The evolved
Read More>>

Telecom Giants' War Of Supremacy; Market Climbs

Market This Week Market was expecting some profit booking as this was the expiry week, but along the way DIIs, FIIs contributed significantly by pumping in Indian equity market. Since the start of the week, investors looked
Read More>>

Reliance Industries Driven D-Street

Market Walk 22nd February, 2017: Reliance Industries driven market ended on positive note. The Sensex gained 103.12 points to 28864.71 Nifty gained 19.05 points to 8926.09 Reliance gained 11.17% to
Read More>>

Deal With Failures Like A Boss

Inspiring stories are not only about success, but they are also about how successful people deal with failures. If any success story just paints the uni-dimensional image of a person's success, it is bound to mislead the readers. Success can only
Read More>>