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Monthly Market Roundup Market Outlook: March
Going ahead, Indian equity markets will
Indian equity markets gave However, it turned out to react positively on the back of third quarter
thumbs up to the Union be a fabulous month for GDP growth rate that came in at 7%, belying
Budget 2017 and started the Indian equity markets. The expectations that demonetisation will dent
February month with smart month finally ended with economic momentum. According to Economic
rally. Markets welcomed upward bias as S&P BSE Affairs Ministry, with remonetisation almost
the budgetary proposals of Sensex delivered positive complete now, the adverse impact on
keeping long-term capital returns of 3.93% to settle consumption will not spill over to the next
gains tax and short-term at 28743.32 and Nifty 50 quarter.
tax rate unchanged for the gained 3.72% ending the All eyes will now be glued at election results
capital market. The major month at 8879.60. in Uttar Pradesh and the US Federal Reserve's
beneficiary of the budget monetary policy meeting which will be
was rural sector which is On the institutional side, scheduled on March 14-15. Further, Indian
the backbone of India’s foreign institutional macro economic data, European Central Bank
economic growth. The investors (FIIs) bought (ECB) monetary policy, Bank of England’s (BOE)
market gains restrained Rs 9,902.18 crore worth of monetary policy and Japanese monetary policy
after RBI kept the policy equities during the month will be major events to watch for. Hence, we
rates unchanged in its sixth while domestic mutual recommend investors to invest in fundamentally
bi-monthly monetary policy fund houses continued strong companies for long term.
and US Federal Reserve their buying spree with net Nifty Technical Outlook: March
Chair Janet Yellen hinting purchases of Rs 2,039.70
at a likely rate hike in the crore in February 2017. Nifty
forthcoming policy review.
On the monthly chart, we are observing
Economic Data Wrap Up – February two consecutive bull candles which suggest
that momentum on the upside is likely to
¡ India's Jan Nikkei ¡ India’s Jan WPI continue. In the coming month if Nifty trades
manufacturing PMI inflation rose to 5.29% and closes above 8966 level then it is likely
rose to 50.4 from 49.6 from 3.39% in Dec. to test 9096 – 9226 – 9377 levels. However, if
in Dec. Nifty trades and closes below 8792 level then
¡ India’s Jan trade deficit it can test 8663 – 8533 – 8382 levels.
¡ India’s Jan Nikkei rose to $9.84 bln from Broadly, we are of the opinion that the
Services PMI rose to $7.67 bln YoY. monthly trend has turned up. This suggests
48.7 from 46.8 in Dec. that momentum on the upside is likely to
¡ India’s Jan core test the all-time highs of 9119 or even extend
¡ India’s Dec IIP industries growth rose its gains further in couple of months. Hence,
growth fell to -0.4% to 3.4% vs 5.6% in Dec. one needs to trade with positive bias as
vs 5.7 % in Nov. stock specific activity is likely to continue.
¡ India’s Oct-Dec GDP
¡ India’s Jan CPI growth rate at 7% vs 3 ARIHANT CAPITAL ¡ MARCH 2017
inflation fell to 3.17% 7.4% QoQ.
from 3.41% in Dec.
