Weekly Review: 1 Jan 2018 to 5 Jan 2018
- 1-JAN-2018: After decent returns in 2017; (Nifty 28%) and (SENSEX 27%) the markets open with a week note on the very first day of 2018. Though the benchmark indices remained range bound in the first-half, heavy selling from the Foreign Investors in the second-half drag both the Sensex and Nifty down and closed with a negative mark on the 1st day.
- 2-JAN-2018: Benchmark indices closed range bound session on a flat note but the markets corrected further on profit booking for a 2nd consecutive session Tuesday. The BSE Sensex fell more than 100 points in the afternoon on weak European cues but managed to recover in late trade to close flat. The BSE index was down 0.49 points while the 50-share NSE Nifty gained 6.70 points at 10,442.20.
- 3-JAN-2018: Benchmark equity indices opened on a positive note on the 3rd day following gains in the US. Again, a selloff in the last hour of trade led to benchmark indices giving up all their gains and ending on a flat note. At the close of market hours, the Sensex was down 18.88 points, and the Nifty ended higher by 1.00 points.
- 4-JAN-2018: The Thursday session began on a mildly higher note, but benchmark indices soon picked up pace after the Finance Ministry said that a Parliament nod will be sought to issue recap bonds to the tune of Rs 80,000 crore. A huge rally in PSU banks and metals stocks helps both the indices to close on a firm Positive note for the very first time in 2018. The Sensex closed up 176.26 points, while the Nifty was up by 61.60 points.
- 5-JAN-2018: The Indian stock markets extended gains for the 2nd consecutive day on Friday as both the SENSEX and the NIFTY ended at fresh record closing high. The rally in the market was mainly driven by three factors; (1) positive global cues, (2) hopes that the government may be meeting its fiscal deficit target of 3.2% of GDP, and (3) the report by rating agency Fitch stating that India will be fastest growing economy over the next 5 years.
Snapshot A Week Gone By
Future Outlook:
The first week of 2018 ended on a positive note and the trend is likely to continue in the next week as well. Though the GDP data the comes in after the market hours on Friday from the Centre declares that India will likely grow at 6.5% in 2017-18, slower than the previous year’s 7.1% could spoil the market mood on Monday’s trade but not likely to have a big impact as such. The big event that the market is eyeing at this moment is the Q3 results which will start after the 2nd week of January. It is likely that Q3 earnings to be better than Q2FY18 and the Budget to be more populist one.
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