Spooked by the nervousness ahead of GST implementation, sustained profit booking and weak global cues, markets closed on a weak note during the week ended.
The benchmark indices, the Sensex and the Nifty ended 216 points and 54 points lower to close at 30,921 and 9,520 respectively. However, outperforming the frontline indices both the BSE Midcap and Smallcap indices ended 0.4 per cent and 0.2 per cent higher for the week.
Volatility has returned with a vengeance and markets are witnessing strong bouts of selling and buying sporadically. Investors may need to brace for more big swings — up and down in the months ahead.
Amidst fears of some teething troubles and difficulties in the initial stage, GST has been introduced from the midnight of June 30. Most disruptive tax reform since independence, GST is expected to boost GDP and improve macro stability.
It’s expected to expand narrow tax base and increase government revenues. In the next few weeks markets will be focused on implementation of GST, course of monsoon and whether or not corporate earnings can continue to rise at a healthy clip in Q1.
Global stock markets continue to grind higher, shrugging off political turmoil in Washington & Rio, West Asia tensions and increased Brexit uncertainty. The market is famous for doing the unexpected. Be cautious warn old-timers.
For the week ahead, chartists predict trading range of 30,450-31,400 and 9,400-9,650 for the benchmark indices. Support for the indices evident at 30,675 & 30,450 and 9,450 & 9,385.
