Indian market outlook by Rajiv Singh: Karvy Stock Broking
Indian market have been declining for the past few weeks. Many stocks have reached attractive valuations but strong buying hasn't been seen in majority of counters in affordable price range. Stock Market views by Mr. Rajiv Singh from Karvy Stock Broking.
The government has displayed strong political will and decisiveness to take difficult decisions, in order to fulfil one of its poll promises related to J&K. We hope that the government will display similar commitment while acting on the economy to improve both its short term as well as long term prospects. We expect that Government will take similar bold moves in case of addressing economic slowdown, recent taxation measures which have dampened sentiment and go ahead with difficult legislations on land reforms , labour reforms and privatisation of PSUs.
While the move on "one nation, one law" has a short term negative impact on the market, there are larger reasons for the decline today. Asian markets have declined sharply in the morning, largely because of the Chinese currency depreciating past the important mark of 7 to the Dollar, S&P 500 futures imply a 1% decline at the time of writing. However, we believe that the downside is now limited and the Nifty will stay in the range of 10,500 to 11,200 in the near term.