EQUITY MARKET OUTLOOK:
We continue to believe that the key to long-term wealth creation in the current market scenario lies in judicious asset allocation. We believe the following factors could support the economy and consequently the equity market over the long term:
*Recapitalisation of state-owned banks could aid credit growth
*Increased expenditure on infrastructure projects could boost business activity
*Rise in minimum support prices of rabi crops could help increase rural spending capacity
*Goods & Services Tax (GST) Council’s improvisation on rules and tax rates could
benefit small business owners
*Companies could report better earnings aided by pro-growth measures taken by the government
*Buoyancy in global markets can fuel optimism in the domestic equity markets
*However, global risks remain and short-term market fluctuations cannot be ruled out.
