GST Bill's passage may not boost markets

Indian markets were in positive mode during the week ended, enthused by outcome of US Fed meeting outcome, indications of GST Bill being tabled in the Rajya Sabha, good progress of monsoon and better than expected Q1 earnings.

The Sensex and the Nifty closed 249 points and 97 points higher at 28052 and 8639 respectively. The midcap index continued to outperform the frontline indices reflecting the underlying positive momentum in the markets. Recent approval by the Union Cabinet for hike in the foreign shareholding limit in stock exchanges, a depository, a banking company, an insurance company and a commodity derivative exch-ange from five to 15 per cent has been received positively.

Expectations over passage of GST Bill are high. However, sceptics say that GST is already factored by the markets, brace for a sharp correction in near term. We need to not that Facebook and Amazon are worth more than Warren Buffet’s Berkshire Hathaway. The rapid rise of tech companies on the back of fast growing cloud business, artificial intelligence, etc is sign of things to come say analysts.

For the week ahead, chartists predict trading range of 27,500 and 28,650 and 8,475 and 8,825 for the indices. Key supports for the indices are at 27,750 and 27,500 and 8,550 and 8,475. Next round of Q1 results, progress of monsoon, progress on the GST Bill, sentiments in global markets will set the market trend this week.