GST Bill passage and the Union Budget would be the key triggers for Indian markets in the New Year.
NEW DELHI: Passage of the long-pending GST bill, lower interest rates and a bounce-back in the foreign portfolio investments, as also a stable rupee and good monsoons, figure high on the New Year wishlist of Dalal Street to help it regain the 30,000-point milestone.
It was a roller-coaster ride for the stock market in 2015 where the benchmark Sensex lost 1,381.88 points or 5 per cent, after gaining nearly 30 per cent in 2014. The index had last registered an yearly loss in 2011 when it fell 24 per cent. It also came off sharply after peaking above 30,000-points mark, a milestone it crossed in March but could not retain.
Listing out the markets’ wishlist for the new year, Bonanza Portfolio’s Associate Fund Manager Hiren Dhakan said, “GST Bill being passed in the Parliament, further rate cuts by RBI, stable Indian rupee against the US dollar, no further devaluation of Chinese Yuan, normal monsoon, fresh policy measures by the government to promote foreign investment and stable oil prices.”
GST, which seeks to simplify and harmonise the indirect tax regime across the country with a single uniform rate, has been stuck for a long time in a political gridlock.
“Passage of the GST bill is likely to be the priority for the government in the new year. Government spending towards infrastructure and ease of doing business will be other wish list which will be keenly watched. As inflation trajectory continues to be low we can expect 2-3 more rate cut decision by RBI during the later part of 2016,” said Vinod Nair, Head Fundamental Research, Geojit BNP Paribas Financial Services.
