Market Check: Equity benchmarks remained sluggish after a record session of trade on Wednesday, with the Sensex in the red ahead of F&O expiry.
The Sensex was down 51.62 points at 30081.73, while the Nifty was down 7.60 points at 9344.25. The market breadth was negative as 1,236 shares advanced against a decline of 1,436 shares, while 144 shares remained unchanged.
Yes Bank, along with auto stocks such as Tata Motors and Hero MotoCorp were among top gainers, while Axis Bank, Lupin and Grasim were among top losers.
Market Outlook: ICICI Direct believes the Indian economy is on a strong footing with relatively strong macroeconomic fundamentals, lower inflation/interest rate regime, possibility of a major reform such as GST and a favourable demography supporting sustainable growth.
“While the current index levels of around 30000 of Sensex looks optically high given corporate flat earnings trajectory over last 3-4 years (FY14-17) amid delay in revival of private capex cycle, we must make a note that markets discount future earnings and growth potential,” Pankaj Pandey, Head-Research, ICICI Direct said.
He feels earning growth would be the key factor driving the markets from hereon.
Furthermore, he believes that factors such as structural shift towards digitisation of the economy coupled with increased focus on channelisation of financial savings, given the relative attractiveness of equity vs. other asset classes, would keep the Indian financial market buoyant for the next 3-5 years.