Weekly Market Quote by Sanjeev Zarbade, Vice-president - PCG Research at Kotak Securities

"It was another positive week for global equities. U.S. stocks rose investors expect the anticipated tax cuts would keep the economic expansion going. European stocks also closed in the positive though underperformed the US and Emerging markets owing to the political instability in Germany. Emerging markets outperformed the developed world for the week.

The market sentiment on the Dalal Street remained positive coming on the back of the rating upgrade by Moody's in the previous week. Sun Pharmaceuticals (+7%), Reliance Industries (+5%) and Cipla (+4%) were the top gainers in the BSE-30 Index. Among sector indices, BSE realty (+5%), healthcare (+3%) and metals & mining (+2%) gained the most. FPIs invested US$157 mn over the past five trading sessions and DIIs bought equities worth US$706 mn.

Going ahead, we believe any easing in oil prices and reduction in inflation would help in extending the ongoing market rally. Election outcome in the PM's home state of Gujarat is another important trigger as a weak showing in this state would be perceived as loss in his popularity and therefore could be read as a sign of slackening in NDA's prospects in the 2019 elections. Apart from this, we remain positive on select midcaps and infrastructure plays."

Source : Equity Bulls

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