Indian Stock Market Outlook by SAMCO
Indian Stock Market Outlook by SAMCO

Indian Stocks remained subdued even as global markets recovered smartly. The banking sector turned the sentiment negative. During most of the trading sessions, stocks witnessed gains but by the end of the session, majority of gains were wiped out. Selling pressure was usually witnessed at higher levels.

Below is market view and outlook by SAMCO Securities....

Market crawled up during the week but gave up the gains by the close of the week, inspite of positive global sentiments, principally due to home grown PSU banking mess being denuded by Punjab National Bank. Generally such mess comes out during bottoming cycle, which PSU banks are passing through. Worst seems to have been discounted in the PSU banks but positive triggers are awaited.

The combined net profit of 1395 companies which have declared their results for Q3FY18 were up by 10.6% (YoY), the combined net sales went up 14.6 % (YoY) which was the fastest growth in last 13 Quarters. Bull markets generally make a top when the numbers are great and bear market forms a bottom when the numbers are ugly. Indeed the market seems to have discounted the fact that good numbers are due to low base effect but going ahead whether such growth numbers would be delivered? Markets currently don't thinks so and hence the price correction seems deepening.

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