Market Outlook

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Market last week

Market began this week on positive note led by strong rupee backed by narrowing trade deficit and inflow of foreign funds. Drop in oil prices, strengthening rupee and pick up in domestic macros provided positive momentum to the market. However, concerns over global economy growth and threat of partial US government shutdown triggered sell-off in global market. Domestic investors used this opportunity to book profit after the recent rally. Global market was influenced by FOMC downward revision in US GDP growth to 2.3% from 2.5% in 2019. FED slashed the interest rate hike trajectory for CY19 to two from four in 2018, which is positive for emerging market.

Week ahead

Domestic macro outlook has turned positive in recent times with fall in oil prices from a peak of $86/barrel to $53/ barrel and pick up in industrial production. Additionally, softening of CPI inflation has opened up scope for RBI to change its stance from ‘Calibrated tightening’ to ‘neutral’ will maintain optimism in market.

Posted: December 2018

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