GDP Estimate, Q3 Results And Budget Cues To Drive Market Next Week

The year 2018 that started with a cautious note for the Indian stock markets with the slump in Nifty by 95 points on the first working day, however ended the week on a positive life-time high. The Nifty scaled to 10,558 points while Sensex surged by 184 points to reach 34,153.

The weak beginning by the markets factored in premium valuations and various other macro concerns including fiscal slippages and rising crude oil prices which spurted to a 2.5 year high of $68.3 per barrel. Inflationary pressure limiting the chances of any rate reduction by the monetary policy committee was also weighed on by investors.

Even as the December auto sales were reported to be positive by nearly all major players, markets began the year with weak sentiment. The subdued trading phase then saw recovery in the last three trading days with improved service PMI numbers and prospects of earnings recovery.

Metals and banking stocks surged on the back of earnings growth expectations and clarity on capital infusion respectively. Investors in the auto pack booked profits after the recent run up in price.

Next week the market shall be driven by the GDP estimates for FY 2018 which came in at 6.5%. The experts are of the view that the numbers signal economic improvement due to the efforts taken by Modi government.

The markets in the next week will move based on the budget-related cues as well as Q3 earning results season beginning with TCS and Infosys slated to report their Q3 numbers on 11th and 12th of January respectively.

Goodreturns.in