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Monthly Market Roundup
Indian equity markets
started the month of
June with upward bias
and touched all time
week of the month.
The market sentiments
turned negative due to
major events i.e. RBI kept
interest rates unchanged,
banks NPA crisis, weak
global cues, US Fed rate
hike and implementation
of GST. Investors were
cautious ahead of rollout
of GST and expectations
that it will hamper
corporate earnings. India
got freedom from tax
corruption as the much
awaited GST rolled out
on 1st July, 2017 marking
India's biggest tax reform
since independence. The
government will be the
Economic Data Wrap Up –June
¡ India's May Nikkei
manufacturing PMI fell
to 51.6 from 52.5 in Apr.
¡ India’s May Nikkei
Services PMI rose to
52.2 from 50.2 in Apr.
¡ India’s Apr IIP growth
fell to 3.1% from 3.8% in
Mar.
¡ India’s May CPI
3 ARIHANT CAPITAL ¡ JULY 2017
Market Outlook: July
Going ahead, Indian equity markets will remain
due to reduction in tax volatile this month due to implementation of Goods
evation and it will be and Service Tax (GST). Investors are under the cloud
positive for the growth of of uncertainty over the implications of the GST on
the Indian economy. individuals and corporates. While the government
expects GST to revolutionise India's taxing system
with downward bias as and is being marketed as one nation one tax. It will
S&P BSE Sensex delivered lower the cost of goods and services give a boost to
negative returns of 0.72% the economy and improve ease of doing business.
to settle at 30921.61 and long term.
Nifty 50 lost 1.04% ending Further, progress of monsoon rains, trends in global
the month at 9520.90. markets, Q1FY18 corporate earnings, monsoon
On the institutional side, session of parliament which will be started from on
foreign institutional 17th July, 2017 and presidential election results are
investors (FIIs) bought the major factors which will impact the markets. On
Rs 3,616.82 crore worth of the global front, the US FOMC meeting minutes,
equities during the month European Central Bank (ECB) monetary policy and
while domestic mutual Japanese monetary policy will be keenly watched
fund houses continued by market participants. Hence, we recommend
their buying spree investors to invest in fundamentally sound
with net purchases of companies with long term view.
Rs 6,954.27 crore in June Nifty Technical Outlook: July
2017.
Nifty
On the monthly chart, we are observing a doji
prevailing at current levels. In the coming month if
Nifty trades and closes above 9574 level then it is
from 2.99% in Apr. likely to test 9650 – 9727 – 9815 levels. However, if
¡ India’s May WPI Nifty trades and closes below 9466 level then it can
test 9391 – 9315 – 9226 levels.
from 3.85% in Apr. Broadly, we are of the opinion that for current
¡ India’s May trade month as long as Nifty holds 9391 on daily
closing basis there is high probability that Nifty
from $6.27 bln YoY. may test the 9800 – 9900 in couple of months.
¡ India’s May core sector Investors should pick up quality stocks for long-
term horizon to gain from the uptrend.
growth rose to 3.6%
from 2.8% in Apr.