Where are stock markets headed in 2017

India GDP growth is the fastest in all large economies. Looking at the economic data one can be sure that India is the only bright spot is a dull global economy. BRIC countries, with the exception of India, are also degrowing.

Moreover, pro reforms government with absolute majority and low commodity prices shall further ensure that growth remains strong. Recent demonetization of high value currency notes and routing of unaccounted money through banks will give a further impetus to the existing 7% plus growth rate. High growth with low corruption, lower inflation and big tax reforms like GST will make India a shining spot amongst all large economies. Just 2 days after demonetization of high value currency notes have added Rs 2 Lac crore in the banking system. Final figure is likely to cross 1 trillion dollars i.e. over Rs 6.7 Lac Crores. This will improve banks’ balance sheets and enable banks to lend more at low rates. Thus, helping Infrastructure lending and create demand. This along with 7th pay commission is likely to have a multiplier effect on the entire economy. Other subjective parameters like consumer confidence, ease of doing business etc are all favoring India.

There is a clear-cut case for investing in Indian stocks. Most well managed companies will show higher bottom lines and improved profitability. Investors should look at taking the mutual funds route to invest. You may connect with us to get a clear perspective.