After recording highs of 30,712.35 and 9,532.60 during the first part of the week, the markets, spooked by global cues, stumbled during the later part for the week ended. The benchmark indices, the Sensex and the Nifty ended 277 points and 27 points higher to close at 30465 and 9428 respectively.
The wait for GST is over, rates for more than 500 services and 1,200 goods were fixed, or 80 per cent to 90 per cent of items were slotted into the GST’s five broad rates clearing the way for the biggest tax reform since independence.
The tax is the culmination of a 10-year effort to streamline India’s archaic tax system. The new levy will reduce the cascading effect of taxes on tax, allowing producers to easily claim credits.
International crude oil rose back above $50 a barrel to a one-month high on growing confidence that Opec will extend cuts to diminish a global glut.
Globally markets ended a volatile week with a final bout of turbulence as Donald Trump’s troubles intensified.
It is interesting to observe that Bitcoin that debuted in 2009 reached an all-time high of $1,961.70 during the week ended. It has more than doubled its value since the beginning of the year amid global political uncertainty and increased interest in Asia.
Near term direction of the markets will be dictated by the ongoing Q4 earnings season, US Fed meeting, F&O settlement and global cues. Track news flow from US as the Trump drama is being compared to Watergate scandal.
For the week ahead, chartists predict trading range of 30,000-30,900 and 9,250-9,550 for the benchmark indices. Support for the indices evident at 30,225 & 30,000 and 9,365 & 9,285.
