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Monthly Market Roundup Market Outlook: August
Going ahead, Indian equity markets are expected to
Indian equity markets climbed latest World Economic Outlook continue upward journey after touching record high
at a fresh lifetime high and (WEO) report said that levels. The RBI’s monetary policy review, trends in
delivered splendid return of growth in India is expected global markets, corporate earnings, GDP and US
23% in the calendar year 2017. to pick up further in 2017 FOMC meeting minutes will dictate the market
The S&P BSE Sensex crossed and 2018. According to IMF, direction. The improvement in macro economic
32,000 levels and Nifty50 India’s growth is projected to factors i.e. low inflation, controlled fiscal deficit,
crossed 10,000 levels for the accelerate to 7.7% in 2018-19, rising consumer demand, improving tax discipline
first time in history. from 7.2 % forecast for 2017- and good rainfall offers good opportunity for
The Nifty50 touched record 18. India will remain ahead of companies to perform well in long run. Investors
high level of 10114.85 and China in growth race in 2017 as should stay invested only in companies with good
S&P BSE Sensex touched well as 2018. These comments management and with attractive business models.
32672.66 levels on 27th July, said by IMF also boosted the
2017. Falling inflation has market sentiment. Nifty Technical Outlook: August
lifted the possibility of interest The month finally ended
rate cut by the RBI and the with upward bias as S&P BSE Nifty
US Federal Reserve hinting at Sensex delivered positive
gradual rate hikes kept market returns of 5.15% to settle at On the monthly chart, we are observing a strong
sentiment strong. The chain 32514.94 and Nifty 50 gained bull candle which suggests that upside momentum
of positive news including 5.84% ending the month at is likely to continue. In the coming month if Nifty
the BJP’s strong win in UP 10077.10. trades and closes above 10187 levels then it is likely
elections, good monsoon, On the institutional side, to test 10354 – 10521 – 10715 levels. However, if
successful rollout of GST, foreign institutional investors Nifty trades and closes below 9966 level then it can
recovery in corporate earnings, (FIIs) bought Rs 7,599.87 test 9800 – 9633 – 9439 levels.
FII’s investment and macro- crore worth of equities during Broadly, we are of the opinion that for current
economic improvement helped the month while domestic month as long as Nifty holds 9600 on daily
markets to attained record high mutual fund houses continued closing basis there is high probability that Nifty
levels. their buying spree with net may test the 10500 – 10700 in couple of months.
Further, the International purchases of Rs 11,799.85 crore
Monetary Fund (IMF) in its in July 2017.
Economic Data Wrap Up – July
¡ India's Jun Nikkei ¡ India’s Jun WPI
manufacturing PMI fell inflation fell to 0.9%
to 50.9 from 51.6 in May. from 2.17% in May.
¡ India’s Jun Nikkei ¡ India’s Jun trade deficit
Services PMI rose to rose to $12.96 bln from
53.1 from 52.2 in May. $8.12 bln YoY.
¡ India’s May IIP growth ¡ India’s Jun core sector
fell to 1.7% from 2.8% in growth fell to 0.4% from
Apr. 4.1% in May.
¡ India’s Jun CPI inflation
fell to 1.54% from 2.18%
in May.
3 ARIHANT CAPITAL ¡ AUGUST 2017
