Views and outlook on markets - Sanjeev Zarbade, Vice-president-PCG Research at Kotak Securities

"The BSE-30 Index dropped over 2.0% to close at 33,307 as the markets saw risk aversion amid weak global cues on prospects of trade wars as well as weak GST collections. Tata Motors (-7%), Bharti Airtel (-6%) and Tata Steel(-5%) were the biggest losers in the BSE-30 Index. Sector-wise, metals (-6%), healthcare (-4%) and capital goods (-3%) were the largest losers. In Friday's trading, the Sensex reversed some of previous day's gains amid sell-off in last hour of trade.

In the next week, the government will release the IIP and CPI data, which will give a sense of the economic recovery and trend in inflation, respectively. In this, inflation would be something that would be critical as its further hardening could trigger fears of rate hikes. On the global front, President Trump's rhetoric on trade protectionism could weigh on markets. On the other hand, any move by the Trump towards reconciliation with North Korea could be taken positively.

The recent fall in mid-cap stocks provides a good opportunity for investors to pick stocks. We advise investors to select stocks with strong management quality, robust earnings growth and reasonable valuations".

Source : Equity Bulls

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