Indian Stock Market Outlook: July 2017 and Beyond
The Indian stock market maintained its celebratory mood throughout the year, closing at a record high of 34,056.83 on the last trading day of 2017. With robust equity shopping from both domestic and foreign institutional investors (FIIs), the market has shown resilience and potential for continued growth. This article will explore the key factors influencing the market and offer insights into the upcoming period, particularly leading up to July 2017 and beyond.
Factors Influencing the Indian Stock Market
Assessing the future trajectory of the Indian stock market involves a comprehensive analysis of several key factors, including:
Political Stability: The current central government, led by the respected leader Mr. Narendra Modi, has shown stability and a commitment to economic upliftment. This stability enhances investor confidence, as a well-governed country with clear legislative goals tends to perform better.Economic Health: Despite the challenges posed by demonetization, the Indian economy is showing signs of robust health. The GDP growth for the quarter ending December stood at 7%, indicating a promising outlook for the coming quarters. This economic health is crucial for the market's performance and overall growth.Monsoon Predictions: The monsoon is always a critical factor for India's agricultural sector, which forms a significant part of the economy. Despite some uncertainties, the current prediction is that the monsoon may not meet expectations. However, this could be favorable in the long term as it drives economic reforms and helps the market adapt to newer opportunities.Market Sentiment: The market has exhibited a strong positive sentiment, driven by the success of demonetization. This move aimed at eradicating black money and promoting a digital economy has already had a positive impact and is expected to continue its positive trajectory.Current Market Performance
The current market is at an all-time high, with the SENSEX reaching 34,056.83. The BSE Sensex and NSE Nifty have also recorded gains of 29.58 and 30.28 respectively in 2017. Notably, sectors such as Tata Motors, Axis Bank, and Tata Consultancy Services have seen significant growth, signaling a broad and strong market performance.
As the market continues to perform well, there is a strong possibility of reaching new highs in the upcoming quarter. Quantitative analysis shows that the SENSEX has already crossed the 30,000 mark, signaling an upward trend. With a potential for reaching 32,000 in this quarter, the market offers significant opportunities for investors.
Looking Ahead: July and Beyond
While the market outlook is generally positive, it is important to keep an eye on upcoming events, particularly the presidential elections scheduled for July. These elections could introduce some volatility, making it crucial for investors to remain vigilant and adapt their strategies accordingly.
The sustained stability of the central government, the favorable economic indicators, and the ongoing positive market sentiment make July a potentially exciting period for the Indian stock market. Joining this flow of positive performance can offer substantial opportunities for both domestic and international investors.