Markets At All Time High – GST Global Markets Key Triggers

Nifty made an all time highs on Tuesday this week , also opening above 9700 levels for the first time ever. Buoyed by the global conducive environment and key tax reforms such as GST , Indian markets are able to attract steady money flow into equities.

 FIIs pumped in almost Rs 4348.34 crore into the markets in the past couple of weeks while DIIs pumped in Rs 2710.13 crore.

The dollar weakening has helped FIIs increase the allocation to Indian markets as it helps improve the gross returns owing to gains on exchange rate. Indian currency infact has been the favourite target currency for carry trade in past six months.

Sensex is now one of world’s best performing indexes on YTD basis and has delivered 17.5 per cent returns. In past two weeks Sensex has delivered 3.11 per cent returns while Nifty has gone up by 3.08 per cent. The mid cap stocks outperformed the benchmark indices in past two weeks and has delivered 4.10 per cent returns. Small-cap index was the best performing market cap based index as the index recorded gains of nearly 4.33 per cent.

Auto index was the best performing index as the index clocked gains of 5.57 per cent followed by FMCG index which gained 4.93 per cent. Bankex was up by almost 3.86 per cent even as IT index gained 1.46 per cent in past 15 days.

The only sectoral index to record negative returns was metal index. The metal index was down by 0.54 per cent in the last fortnight.

Globally, all the major indices inched up in past 15 days except CAC 40 which slid by 0.28 per cent. Dow Jones Industrial Average (DJIA) was up by 1.38 per cent, S&P 500 was up by 1.76 per cent and NASDAQ was up by 2.64 per cent.

Nasdaq is up by 16 per cent on YTD Basis. Hang Seng inched up by 3.91 per cent; was the best performing global index if we consider previous two weeks performance.

DAX was up by 1.61 per cent, Nikkie was up by 1.65 per cent while FTSE was up by 0.39 per cent.

Going ahead, development on the GST front will direct the markets along with the INR- USD dynamics. The RBI meet slated to take place in August will be keenly watched by the market participants even as it is expected that the reserve bank will maintain a neutral stance in the coming Policy meet.

On technical front Nifty remains in bullish zone unless it closes below 9630 levels on closing basis.On the upper side if Nifty closes above 9750 chances are ripe for the benchmark index to touch 9930 levels in a hurry.

Going ahead, development on the GST front will direct the markets along with the INR- USD dynamics. The RBI meet slated to take place in August will be keenly watched by the market participants even as it is expected that the reserve bank will maintain a neutral stance in the coming Policy meet