Keep Your Eyes, Ears Close To Loads Of Global, National Happenings

With the government finally reaching a consensus on the contentious issue of dual control in their 9th GST Council meeting, stage looks all set for the implementation of an all-important uniform taxation in the country. Therefore, the eyes would be on the Union Budget which is slated to be tabled in the Parliament on February 1. In my view this Budget is going to be the best one delivered by Narendra Modi government on the back of five key states’ assembly elections lined up during the coming two months. This Budget undoubtedly will have prime focus on agriculture, SMEs and middle class population.

Domestic markets have made a positive start in the very beginning of the new year as all the fears alluding to the impact caused by demonetisation seem to have waned away as per what the macro data released by the government and Q3 earnings suggest till the time of sending this report to print. Industrial production data for the cruel month of November when the demonetisation move was announced bucked the trend on the positive to witness a solid growth of 5.7 per cent which was supported by a favourable base effect.

In the first batch of quarterly earnings reported till now, the numbers also suggest that demonetisation was overstated to a great extent as companies which were supposed to have been affected the most delivered on all the fronts. At the same time not having any impact on asset quality whereas, on the flip companies were also able to increase their loan book. However, to obtain a much clear picture, results from other sectors would be keenly tracked given all the rhetoric surrounding currency demonetisation.

In my view, despite all the major financial institutions and global multilateral agencies cutting India’s GDP target for FY17, I expect the move to be overdone and India will be able to achieve something in the range of 7-7.2 per cent for FY17, with growth accelerating further in FY18 as positives of both demonetisation and GST would be visible. In this edition of your favourite fortnightly, our focus shifts to high dividend yielding stocks during the times of falling interest rate in the economy. Our editorial research team has carried out an exhaustive analysis of the companies paying high dividend yield over the period of years and therefore, making it a compelling preposition for all our esteemed investors to put in their hard-earned money. 

We also have prepared a detail report on the upcoming IPOs of both BSE and NSE. The business of stock exchanges has been buzzing off late with the news of the two premiere exchanges hitting the primary markets. Worldwide stock markets have been evolving with time in terms of financial product offerings and services being delivered by them. Stock markets in India will continue to do well with equity as a percentage of saving in the country grow in times to come will translate into strong growth for the bourses.

Five states, including the most populated of all Uttar Pradesh is all set to go for polls from the first week of February three days post Union Budget is tabled. All eyes now would be on the UP elections. Going ahead, Q3 earnings would be keenly eyed along with statements from White House after Donald Trump moves into the Oval office on January 20. At this point, I expect markets to remain positive.

Watch out next few days closely as loads of global and national happenings are on the cards. 

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