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.

 

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