New Delhi, Jan 14 (PTI) Stock market is expected to be

more volatile in 2018 compared to last year due to global

headwinds like tightening of monetary stance by major central

banks and increasing crude oil prices, as per industry chamber

Assocham.

“Correction in the global indices due to any or all of

the factors such as – the central banks tightening globally,

balance-sheet reduction of the US Fed, pressure on crude oil

prices and geo-political risks, among other factors, may

impact over-bought position in India, China and other emerging

markets in 2018,” an Assocham paper note today said.

It said the market in 2018 may be contrary to 2017 when

as many as 153 initial public offers (IPOs) hit the Indian

bourses and raised around USD 11.6 billion.

“The AUM (Asset Under Management) may remain a preferred

choice for investors in 2018 as well, but with the bond

markets indicating inflationary pressures and their upward

impact on the interest rates, the dice may favour debt market

and the bank deposits again,” the paper said.

During Jan-Dec 2017, the paper said, the domestic

institutional investors made the record net purchase of Rs

90,738.31 crore, whereas foreign institutional investors

registered net withdrawal of Rs 44,108 crore from India during

this period.

“In the backdrop of upcoming union budget in the

beginning of February, followed by assembly elections in key

states, the markets may witness greater amount of volatility,”

Assocham Secretary General D S Rawat said.

In 2017, the stocks of certain industries such as IT and

pharmaceuticals which are based on export businesses remained

under pressure due to continuing disappointment by the

earnings caused by decline of US Dollar to the rupee

throughout the year.

“Which sectors would outplay others is still not clear,”

the paper said.

This is published unedited from the PTI feed.