Triggered By GST, Markets Inch Up

By the time you read this, we will be in the new fiscal year which is going to be stronger, better and more profitable. When I say that, I find the unified tax regime labelled as GST will be the key trigger taking the markets up from here and come July, once the new set of laws are rolled out, there will be many sector-specific actions. Albeit, positive ones depending on impact of GST on those particular sectors. While I find GST to be the main positive key taking the markets higher from here diminishing the chances of Sensex being lower from the 29000 mark, let us look forward to the fourth quarter earnings. We have all the reasons to believe better numbers to be posted by the companies during the end of the last quarter of the fiscal year in comparison to the third quarter numbers. This will also push the markets towards higher limit. A vertical expansion of the markets’ scales are on the cards very much in this new year as we gear up to embrace it. Don’t be surprised if we see 9400 to 9500 levels in nifty in coming trading sessions.

Meanwhile, FIIs participation is also expected to increase along with steady participation from the DIIs. BJP’s massive victory in Uttar Pradesh has infused lots of confidence among the investors, both local and international and most are now talking about steady government in India for the coming decade or so. With long-term political stability seen in India, the foreign institutional investors are willing to take higher exposure to Indian equities. India remains favourite destination for foreign institutional investors with concern over China’s economy being over-leveraged resurfaces.

Mid-cap stocks have outperformed the broader markets in recent times and particularly have been in the radar of the retail investors. In this edition of your favourite investment fortnightly, we get you our annual ranking of the top 250 mid-cap stocks for 2017.

The previous year has been a good year for IPO investors and indeed primary market investors have had a decent opportunity to make some wealth for themselves. However, since we keep in touch with the investing community, we get feedback from individual investors that the IPO shares have not been allocated to them sufficiently.

In this issue, we have delved deeper into the IPO allotment process in India and have some important suggestions to make to the IPO applicants. The IPO story also focuses on the IPO lifecycle. We are excited to share this story with you all at this juncture as the coming year is expected to be an action-packed year for IPO investors. We hope our reader-investors make optimum use of the insights provided in the IPO story and make some smart money from IPO participation.

For my investor friends who follow technical analysis we have provided you with a thought provoking article on ‘false breakout.’ We hope this article will help you identify them and you save loads of your capital identifying profitable trades.

I hope readers make the most of the insights shared by us in this edition and we look forward to your feedback on the interesting stories especially brought to you by our teams.

Summer is approaching fast and it is very much felt in the commercial capital of the country and elsewhere too. Ensure you stay in good health during this rude season. We will, meanwhile, ensure you maintain a good financial health too. Write back to us--it is always great to hear from you.