Markets Might feel Global Frenzy

The Nifty 50 returned 9.1 per cent year-to-date  (YTD) (as of August 14, 2018) and is showing mixed signals as we approach the end of the season for the quarter. Though macro indicators and earnings show positive signs, global instability, currency, and crude oil have been dictating the course of the market In the last four years, we saw a stark rise in domestic participation in primary markets as well as equity mutual funds, with the Domestic Institutional Investors net inflow increasing by ~68 per cent YTD (as of August 13, 2018). We expect this trend to continue. To add to the macro cheer, India’s June Index of Industrial Production beat estimates touching seven per cent from 3.9 per cent in May, indicating promising trends within consumer durables, capital and construction goods. Meanwhile, as the impact of GST and demonetization wanes, we believe that corporate earnings...