The market is likely to remain positive on a long-term basis.
The Indian market continued to trade in volatile regime with negative bias after budget announcement. Further, the extended pressure in the automobile industry, with a drop in overall monthly volume growth (expect M&M) and drop in PV sales by 17.54 percent in June, led to concerns over growth. However, the market rebounded from weeks’ low on Thursday after a dovish testimony from US Fed Chairman hinting at a rate-cut in July end.
Nifty index formed a weekly high of 11981 levels but failed to sustain the levels to make weekly low of 11461 levels. The only Nifty index which ended in green on weekly basis was Pharma sector which was up by 0.79 percent. However, among sectors which ended in deep red were Nifty Auto, Metal, and IT among others, which were down by 5.2 percent, 5.3 percent and 4.5 percent respectively in the same period.The market is likely to remain positive on a long-term basis on account of different initiatives laid down in the Union Budget, ranging from recapitalisation of PSU banks to relaxation in FDI policy for key sectors of the economy. Further, the positive commentary on the trade front coupled with easing of monetary policy across the developed economies is likely to give an impetus to the medium to long-term growth. Short-term volatility arising primarily out of negative news flow in terms of taxation policy on super HNI, coupled with looming concerns over trade-protectionism, cannot be ruled out. The kick-off of earning results for Q1FY20 is also likely to trigger trend for the Nifty index, says Dinesh Rohira of 5nance.com.The Great Diwali Discount!
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