Welcome to Indian Share Market
Updated on 25 June 2017
Four key factors are likely to chart market direction this week
As the nation’s closing closer with GST , the stock market seems to be in a state of nervousness on its immediate impact. Falling crude prices and a slide in the rupee were the other key factors that weighed on market sentiment during the week gone by.
The S&P BSE Sensex closed 153 points lower at 31,138 on Friday with Sun Pharma being the top gainer and Tata Motors DVR the worst laggard. The NSE’s Nifty50 hit a one-month closing low of 9,575, with 39 constituents ending the day in the red.
On a weekly basis (June 19-23), the 30-share pack of BSE lost 0.55 per cent while the Nifty50 closed 0.86 per cent lower.
The coming week is of full action as a host of events are lined up, including the historic GST rollout. Going by the buzz on Dalal Street, here is a list of 11 factors that may steer the market during the holiday-truncated week.
The domestic stock market will remain closed on Monday, June 26, on account of Id-Ul-Fitr.
GST rollout: After a long wait of 17 years, the goods and services tax (GST) is all set to become a reality on the midnight of June 30. GST is the indirect tax reform that will replace several taxes levied by the central and state governments. It was introduced as the Constitution (122nd Amendment) Act 2017, following the passage of Constitution 122nd Amendment Bill.
Under GST umbrella, goods and services will be taxed at 0%, 5%, 12%, 18%, 28%. Gold will become slightly costlier Needless to say that the implementation of landmark tax reform goods and service tax (GST) will be the biggest driver of the markets in the days ahead.
F&O expiry: The domestic equity market may remain volatile as traders roll over futures & options (F&O) positions from the near-month June series to July series. The near month derivatives contracts will expire on Thursday, June 29 2017.
Tejas Networks to debut on D-St: Tejas Networks, which sold its initial public offer (IPO) last week, is set to make its debut on BSE and the National Stock Exchange (NSE) on June 27. The IPO was oversubscribed 1.88 times, with the portion reserved for qualified institutional buyers (QIBs) getting oversubscribed 2.16 times. The price band for the offer was fixed at Rs250-257 per share.
Crude prices: Crude oil prices plunged to a 10-month low on supply glut during last week. Oil futures edged higher on Friday thanks to a lift from a weaker dollar, but finished a fifth straight week lower as Opec-led production cuts failed to substantially reduce a global crude glut. For the week, both benchmarks lost 3.9 per cent, and oil currently sits just off 10-month lows, beset by ongoing worries about rising production. Any further downtrend would put pressure on oil stock prices.