MARKET OUTLOOK FOR .... APRIL 2018

The stock market in India has given stellar returns in 2017.The market in 2018 so far has reversed the trend. Now the million dollar questions are :

 1. Is there more downside or is consolidation 
     around the corner?

 2. Will the market move higher from here ?

Our research team over this weekend made some quick back of the envelope calculation after scanning tons and tons of data loaded on our one of the most advanced market analytics software.

Nifty closed at 10114. Now we will see a positive market in April. Midcap space will give a bumper return based on earning. We may see a dose of volatility as bulls and bears will fight for their survival. Bulls will win in the end.

We must keep eye on Trump, Karnataka elections and bond yield globally leading to potential liquidity withdrawal. 

In general, economic growth around the world is solid, which is also visible in PMI data, etc. Most Asian currencies are largely stable. We see an ROE recovery across the region led by consumption and buoyant exports in FY19.Within India, we have seen intense policy action over the past couple of years around RERA, the Bankruptcy Law, demonetisation, GST implementation and PSU bank recapitalisation. India has not participated in the global growth recovery from late 2016. But we expect an investment recovery especially related to government-related infrastructure projects, rural housing, etc in FY19. A improving Urban consumption and good credit offtake for private players will push the market up. However concerns over the fiscal situation, worsening health of PSU banks, etc. will dampen the sentiments.

Last but not the least, we think there are several quality stocks are available at reasonable valuations. So be prepared for a profitable April ahead.