Indian Market Outlook for the week – 30.01.2017 to 03.02.2017
Indian Market Outlook for the week – 30.01.2017 to 03.02.2017
( www.rupeedesk.in )
Domestic stock indices are likely to stay choppy with a positive trend next week, as the Union Budget and a host of December
quarter results from the Nifty 50 companies will lend cues. The government will present the Union Budget for 2017-18 (Apr-Mar)
on Wednesday, and the general expectation is that the government will do its best to revive the economy, which was hurt by the
demonetisation of high value currency on Nov 8.
Yesterday, the government issued a clarification on implementation of the General Anti-Avoidance Rules or GAAR from April 1, to
provide certainty and clarity in tax rules. GAAR is an anti-tax avoidance rule, and the government clarified that if
the jurisdiction of the foreign portfolio investor is finalised based on non-tax commercial considerations and the main purpose is
not to obtain tax benefit, then GAAR wont apply.
This is the right step by the government and indicates they will be quick footed in the future to clarify any ambiguity in tax rules.
Also, investors will be looking at the US advance GDP data for Oct-Dec due later today, and its likely impact on a rate hike
decision in the US. The Federal Open Market Committee will meet on Tuesday and Wednesday, and expectations are that they
could signal the future trend in interest rate.
Meanwhile, Housing Development Finance Corp, Grasim Industries, and Tech Mahindra will announce their Oct-Dec results on
Monday.
On Tuesday, Oil & Natural Gas Corp, ICICI Bank, and Bajaj Auto will detail their results, followed by Eicher Motors on the Budget
day, and ACC on Friday, and Dr Reddy's Laboratories on Saturday.
The stock market is in a bullish mood, with the government seen reducing direct taxes and improve compliance to get more
people enter the tax bracket. Mid last week, the Nifty 50 index crossed the 8600 mark for the first time since Nov 1. Post
demonetisation, the severe currency crunch in the economy had hurt investor sentiment, with the Nifty 50 touching a low of 7893
points on Dec 26, while the BSE Sensex had hit a low of 25765.14 points on Nov 21.
Yesterday, the benchmark stock indices closed nearly at a three month high. The 51-stock Nifty 50 index closed up 38.50 points,
or 0.5% at 8641.25 points, while the BSE Sensex closed at 27882.46 points, up 174.32 points, or 0.6%. Among sector indices,
the Nifty Bank ended up 1.2%, the Nifty Financial Services up 1.6%, the Nifty PSE up 0.9%, and the Nifty PSU Bank ended up
2.6%.
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Indian Market Outlook for the week – 30.01.2017 to 03.02.2017
( www.rupeedesk.in )
