New Delhi, Jan 14 (PTI) Stock market is expected to beAlso Read - European Union Wants 'Verifiable Proof' of Tennis Player Peng Shuai's Safety | Tennis News
more volatile in 2018 compared to last year due to global Also Read - China Could Record Over 6.3 Lakh Daily COVID Cases If....., Warns Study
headwinds like tightening of monetary stance by major central Also Read - New Covid Variant Threat: India Extends Travel Restrictions to THESE Countries. Full List Here
banks and increasing crude oil prices, as per industry chamber
“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
“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.