Though most Asian market is trading lower in the first trading day of the week, but Indian market looks for a fresh positive start. With earnings momentum in U.S. on the rise, Indian and most global markets will witness its positive impact sooner or latar. The U.S. equity benchmark closed the week at a fresh five-year high on strong housing and labor market data and a string of earnings that beat lowered expectations.
Global rating agency Moody's has reaffirmed sovereign credit rating of India at Baa3, which indicates investment grade, with a stable outlook. The rating agency has cautioned that a high fiscal deficit could pull down the growth in the coming years. It further said that while high commodity prices have raised the subsidy bill, government's measures to reduce fuel and fertilizer subsidies were too modest to compensate for high global commodity prices.
Corporate earnings will continue to dominate as the guiding factor for the Indian stock market for the week. Auto giant Maruti Suzuki and FMCG major Hindustan Unilever, HDFC, NTPC and Cairn India are the major companies to that will announce October-December quarter results, this week. Moderately good set of numbers are expected from all these companies. Besides earnings, investors will also look for signs on key rate cut in the RBI policy review slated for January 29. Hopes of a possible rep rate cut were dented last week by RBI Governor D Subbarao's view that inflation is "still high". But post the governor's cautionary comments on high inflation, the markets seem to have moved the probability in favour of 25 bps.
High flow of FII funds in Indian equity market is another indication of the Indian growth story. Overseas investors have pumped in over Rs 13,000 crore (about USD 2.5 billion) in the Indian equities so far this month. Market analysts attributed huge inflows into Indian equities were the result of the steps taken by the government including the postponement of the implementation of the GAAR by two years to April 1, 2016 and partial decontrol in diesel prices.
Thus the given scenario leaves no room for being bearish for the Indian market, rather the market trend is up and decline must only be viewed as an opportunity for investment.
Global rating agency Moody's has reaffirmed sovereign credit rating of India at Baa3, which indicates investment grade, with a stable outlook. The rating agency has cautioned that a high fiscal deficit could pull down the growth in the coming years. It further said that while high commodity prices have raised the subsidy bill, government's measures to reduce fuel and fertilizer subsidies were too modest to compensate for high global commodity prices.
Corporate earnings will continue to dominate as the guiding factor for the Indian stock market for the week. Auto giant Maruti Suzuki and FMCG major Hindustan Unilever, HDFC, NTPC and Cairn India are the major companies to that will announce October-December quarter results, this week. Moderately good set of numbers are expected from all these companies. Besides earnings, investors will also look for signs on key rate cut in the RBI policy review slated for January 29. Hopes of a possible rep rate cut were dented last week by RBI Governor D Subbarao's view that inflation is "still high". But post the governor's cautionary comments on high inflation, the markets seem to have moved the probability in favour of 25 bps.
High flow of FII funds in Indian equity market is another indication of the Indian growth story. Overseas investors have pumped in over Rs 13,000 crore (about USD 2.5 billion) in the Indian equities so far this month. Market analysts attributed huge inflows into Indian equities were the result of the steps taken by the government including the postponement of the implementation of the GAAR by two years to April 1, 2016 and partial decontrol in diesel prices.
Thus the given scenario leaves no room for being bearish for the Indian market, rather the market trend is up and decline must only be viewed as an opportunity for investment.
No comments:
Post a Comment