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Monthly Market Roundup
Indian equity markets
started the March month
on an optimistic note.
The markets remained
positive throughout the
month and touched all
time high in reaction to the with upward bias as S&P
BJP’s landslide victory in
Uttar Pradesh elections.
The US Fed hiked interest
rates by 25 basis points,
as expected, but didn't
raise projections for future 9173.75.
tightening gave comfort to
global investors. Positive
news from the tabling of
GST bills and the Finance
Minister's comments
regarding a policy decision
for solving India's bad
loans problems, also
helped markets to gain
momentum. Further, the
Economic Data Wrap Up – March
¡ India's Feb Nikkei
manufacturing PMI
rose to 50.7 from 50.4
in Jan.
¡ India’s Feb Nikkei
Services PMI rose to
50.3 from 48.7 in Jan.
¡ India’s Jan IIP growth
rose to 2.7% vs -0.1 %
in Dec.
¡ India’s Feb CPI
inflation rose to 3.65%
from 3.17% in Jan.
Market Outlook: April
Going ahead, Indian equity markets will remain
market sentiments were positive this month on the back of thumping victory
lifted after the Lok Sabha for the BJP in Uttar Pradesh elections. The election
cleared four bills related results has lifted concerns over political stability,
to the Goods and Services due to which now most FPIs are of the view that
Tax (GST). the government will now push reform agenda. The
The month finally ended election results could provide a much needed boost
to government to accelerate the pace of reforms,
BSE Sensex delivered including the rollout of the crucial Goods and
positive returns of 3.05% Services Tax (GST). GST is one of the key reforms
to settle at 29620.50 and that have the potential to bring about a structural
Nifty50 gained 3.31% change in the Indian economy.
ending the month at On the economic data front, the RBI’s monetary
policy which will be scheduled on 6th April, 2017
On the institutional side, and the US Federal Reserve's stance on interest rate
foreign institutional would also impact the markets. Further, Indian
investors (FIIs) bought macro economic data, Q4FY17 corporate earnings,
Rs 31,326.46 crore worth of European Central Bank (ECB) monetary policy and
equities during the month Japanese monetary policy will be major events to
while domestic mutual watch for. Hence, we recommend investors to invest
fund houses continued in fundamentally sound companies for long term .
their buying spree with net
purchases of Rs 2,367.60 Nifty Technical Outlook: April
crore in March 2017.
Nifty
On the monthly chart, we are observing a bull
¡ India’s Feb WPI candle which has registered new all-time high this
inflation rose to 6.55% suggests that momentum on the upside is likely to
from 5.25% in Jan. continue. In the coming month if Nifty trades and
closes above 9245 level then it is likely to test 9349
¡ India’s Feb trade – 9454 – 9576 levels. However, if Nifty trades and
deficit rose to $8.90 closes below 9102 level then it can test 8997 – 8893
bln from $6.57 bln – 8771 levels.
YoY. Broadly, we are of the opinion that monthly
trend is up and 9000 to 8950 remains crucial
¡ India Oct-Dec CAD at demand zone going ahead. Hence as long as
1.4% of GDP vs 0.6% Nifty holds the mentioned level on closing
of GDP QoQ. basis there is high probability that markets
are likely to test 9400 - 9600 levels in couple of
¡ India’s Feb core months.
industries growth fell
to 1% vs 3.4% in Jan. 3 ARIHANT CAPITAL ¡ APRIL 2017