Wednesday 14 March 2018

Stocks Will Do Well In 2018 But 10% Nifty Correction Possible

Posted by suhani varma on Wednesday, March 14, 2018 with No comments



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So, on a year-on-year (YoY) basis it will be a nice year of correction and once the new government comes in the market should pick upThe pain may not be over for Indian market even after a near 10 percent correction from the all-time high recorded earlier in January, feels Raamdeo Agrawal, Joint MD at Motilal Oswal Financial Services. There could be another 10 percent slide in Nifty in 2018, Agrawal told CNBC-TV18.

Volatility hit Indian markets after a largely calm calendar year 2017 due to a rise in bond yields (both in India and globally), tightening liquidity conditions, fears of inflation, and adverse market reaction to domestic policy events, especially the Union Budget.

The fall in the index was largely weighed down by both domestic as well as global factors starting February. Foreign institutional investors (FIIs) dumped Indian equities after the proposed imposition of long-term capital gains tax (LTCG), and the PNB banking fraud which caught many off-guard.

The good news is that the bull market is still intact, but after a 3-year rally it is time to give back some gains, said Agrawal. He said slow catch-up in earnings, and the massive banking fraud were keeping sentiment low.

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