Markets trading ahead of long term average

Teena Virmani, Vice President - PCG Research, Kotak Securities

"Market movement during last week was largely led by stock specific movements such as negative surprise on cess on ITC, buyback announced by Wipro, bonus issue/Jio Phone announcements from Reliance.

Markets are already trading at more than 17x FY19 estimated earnings, ahead of the long term average. So going forward, the market movement would be dependent upon stock specific actions such as results. We expect sectors like Capital Goods, Cement, Commodities (Metals / Oil & Gas), Agro Products and Paints to perform better in terms of Q1FY18 results".

Source : Equity Bulls

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