Market Flat After Fed Rate Hike; Good Time For Buyers

Dec 16, 2016 | 12:52 PM IST

Market This Week With the US Fed meet major events are nearly over for the markets, domestic as well as global. Uncertainty is looked like over. Digesting the Fed rate hike and hawkish rate outlook, the market is expected to be range-bound in near term due to lack of domestic as well as global cues. Volumes may be thin going ahead in current month on likely lower FIIs activity due to Christmas holidays and vacation. Analysts don't expect major slide in the market as valuations are attractive after recent fall. Movers & Shakers As the demonetisation effect is still sinking in and the recent US Fed rate hike has not given market any chance to bounce back, market is still going flat. However, due to the FII development and the positive forecast of future, the present time is a good opportunities for the new investors to enter in the market as majority of stocks are on support levels and these levels may not be seen again in the coming days. Street is expecting bull rally to initiate soon considering reforms of the Union Budget may start coming to the market. On the floor of enhanced liquidity, Indian economy can rally in coming quarters. Added advantage could be GST for the majority of the sectors in the economy. Key Market Drivers The week was uneventful as the market was consolidating in the anticipation of Fed rate hike. However as it was result of Fed meet was exactly as expected market did witness any drastic downfall. The only sector which saw some movement was Information Technology (IT). Companies like TCS and Infosys saw some upward movement due to appreciation of USD. Event Watch Exports rose for the third straight month in November, recording a growth of 2.29%. Though the trade deficit shot up to about 2 year high of USD 13 billion where rise in gold imports is factored. As of now Oil prices and rupee depreciation is point of concern for India. OPEC and other producers over the weekend agreed to jointly reduce output in order to rein in oversupply. Cut in output can add some cushion for the volatility. European stocks were mixed as political uncertainty in Italy eased. As the dark clouds hovering over the market are receding now, it will be fair to expect good days ahead. Stocks to Watch Uflex is on up side while Sun Pharma is on down side.

 

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>>