Don’t Be In A Hurry To Buy Or Sell

Markets are poised in a such a way at this juncture that Indexes may move sideways but there could be a lot of stock specific actions. We expect indexes to be in sideways trend for the coming couple of months at least while maintaining our target for Sensex at 36000 levels by March 2018.

There is no reason for investors to panic and sell stocks at this juncture neither there is an environment exciting enough for investors to pump in fresh money. So trade cautiously, we can say at this time.

In coming days the key trigger for the markets will be rolling out the unified tax regime, GST and the improvement in earnings in the coming quarter. June quarter performance for the corporate India will be much better than the performance in the previous three quarters and that will set the momentum for the bullish market.

With GST implementation there will be some disruptions in the markets initially and may provide some opportunities for long term investors to catch on to their favourite picks.

Recent trip of our Prime Minister, Narendra Modi to Europe promises to be yet another successful investment pitch and one can expect good amount of funds being parked in India from Europe in the coming years.

Indian equity markets remain one of the most attractive markets in the emerging space and on YTD basis remains an world beating index.

FIIs have been net buyers in the market and there is no reason to believe that the FII flows will slow down. In fact with INR strengthening against USD, the foreign investors will be more than happy to park their money in high growth emerging market like India.

Investors can continue to look at infrastructure stocks along with PSU banks. As economy recovers and picks up growth momentum, various sectors that have lagged so far will start performing now. The so called NPA problem which has plagued the banking system will start getting resolved mainly due to broad based recovery in the economy. PSU banks may start delivering goods in coming quarters as the select quality PSU banks get their act together.

In this issue we have analysed media and entertainment sector as our cover package and have come out with our observations on where the sector is heading towards in future. I am sure you will enjoy reading the trend forecast for the media and entertainment sector. 

In case you are an investor with a penchant for numbers we have a good news for you. In this issue we have the Q4FY17 earnings demystified for you and the findings, I am hopeful, will help you invest better and smarter with clear understanding of what is happening on the earnings front. 

Going forward, markets will start discounting better earning in the coming quarter, GST and liquidity driven global markets rally. Remain cautious at these levels only because it is better to be and not because we think markets will fall. Invest in staggered manner and stay diversified. 

Happy investing !