what to do in current market scenario when its on peak


The S&P BSE SENSEX has risen by 5,500 points in the last six-and-a-half month. The Sensex and Nifty, India's benchmark indices have risen by 20% since the beginning of the year; globally no other markets have risen as high as Indian markets. 

 the market trend is volatile and has got equal opportunity to scale new heights or to dip down. Vibrant macro-economic data, stable and reform oriented political landscape indicate an upward trend for the market. India's macroeconomic indicators are supporting markets high growth. Like, GDP is growing at 7.1% for FY 2016-17, inflation is falling, and a fiscal deficit is in check. Indian economy is the fastest economy in the world with 7% + GDP growth rate. Last Financial Year (2016-17), the government has achieved the fiscal deficits target of 3.5%, For 2017-18, the government aims to further bring down at 3.2%. Retail inflation has fallen to 1.54% in June 2017.The implementation of GST will add value to reforms process and likely to grow (GDP). However profit booking is an unavoidable feature especially when markets attain an all-time high spot. 

It is a fact that no one can predict the next level of markets. Markets have many drivers which decide its trend. The upcoming RBI Monetary Policy is a major driver. The RBI policy is scheduled on 2nd August 2017. At the background of low inflation, (the latest Consumer Price Index inflation reading being at a record low 1.5%, which is below RBI's mid-term target of 4%) markets are expecting a rate cut from RBI. Though the data Indicates rate cut action but the confirmation from the monetary watchdog is awaited. 

Markets have reasons to move up or down. Compared with weak global economic landscape, the scenario in India is promising. As discussed earlier macro-economic indicators are in good shape which is big positive factor. On political side, the implementation of GST is a big achievement. GST has the potential to boost GDP growth rate, and in turn business confidence. In short, Indian economy and markets have no reason to worry in the near term at least.
posted by,

 saket kumar singh (founder)
Lakshya wealth services

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