Buoyed by the improvement in Ease of Doing Business rankings, stock specific action, positive global cues and undercurrent bullish momentum, markets ignored weak economic data to close at record highs during the week ended.
Benchmark indices Sensex and Nifty moved up by 528 points and 129 points to close at 33,685 and 10,452 respectively.
While the “jump” in Ease of Doing Business rankings demonstrates political will to reform, the country needs to do more to improve enforcement of contracts and fast-track construction permits, say observers.
A review of results till date shows that 26 per cent of Nifty companies have missed consensus earnings expectations, while 41 per cent have been in-line. A gradual recovery in headline revenue growth can be seen for consumers, as trade disruptions slowly abated since the implementation of GST.
Coming week would continue to be a busy one as results would continue to pour in throughout the week. Apart from results, near-term direction will be dictated by IIP numbers, export & import data and global cues.
Post axing of Trans-Pacific Partnership, Mr Trump’s Asian visit will be indicator whether US’ economic leadership is in doubt. Fund managers feel that Mr Trump should reassure allies and set a new vision for America’s role in Asia or else he would be leaving the field wide open for China.
For the week ahead, chartists predict trading range of 33,150-34,250 and 10,315-10,600 for the benchmark indices. Support is evident at 33,425 & 33,150 and 10,375 & 10,300.
