Market Back In Green; ‘Acche Din’ For Investors

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