From January 2017
nifty has seen a phenomenal run of 2000 points. In November 2016 after
Demonetisation by the government, industry and markets feared the worst.
However, even though there was a temporary disruption, Indian economy quickly
overcame the temporary challenges.
1. As money was channelized by citizen to
the formal financial system, Mutual Funds witnessed copious contribution from
investors as a result even though Foreign Institution sold in the quarter
October- December, Mutual Funds and domestic Institution invested about
Rs.40,000 crores which immediately supported the equity market.
With Banks flush with liquidity and Inflation benign, interest rates are
witnessing downward trend. This in turn has encouraged further flows in equity
markets which has been returning better returns compared to other asset
Government has been resolute in creating favourable environment for
implementation of Goods & Services Tax (GST), which in turn has only
enhanced confidence amongst investors and industry alike.
Expectations that GST will give further impetus to formal economy at the
cost of informal economy and thereby increase marketshare and profitability of
listed companies, has encouraged investors to forecast higher valuation of
Last year Banking Sector had seen lot of stress due to higher NPA
provisioning. However, due to constructive steps taken by Government, RBI and
Banks, much of the NPA are now recognised and provided for. As a result
investors are more confident of Better profitability of Banks in next 12
months. Also investors expect that demand in economy will steadily pick up and
most companies are expected to show better results and margin expansion in year
ending 2018 & 2019.
India today due to constructive and
effective leadership at the Government level, is much favoured amongst the
foreign investors. A stable and relatively strong Rupee is attracting funds
from across the world. Rating Upgrade by International Rating Agencies will
further strengthen India’s case. Nifty Crossing 10000 comfortably is most