Crude below $50/bbl, rupee, Nifty at record highs; but this may sour mood

Crude below $50/bbl, rupee, Nifty at record highs; but this may sour mood

It’s a dream run for rupee and benchmark equity index NSE Nifty, as both of them are at their record levels. The former hit a fresh 16-month high on Thursday, while the latter closed above the 9,100 level for the first time ever.

Of late, prices of crude oil in international markets have already gone below $50 per barrel. Most of the factors are also looking in favour of the domestic equity market after the landslide victory of BJP in Uttar Pradesh.

However, Gautam Chhaochharia, Head of India Research, UBS is cautious on India Inc’s earnings growth. In a chat with ETNow, he said: “We do not see earnings growth expectations being met. In fact, we do expect another 7-8 per cent cut in FY18 Nifty EPS estimates. The reform story post UP election is what is driving the hope for markets near term but we have to see tangible steps in that reforms agenda, not just hopes.”  Read More…

Credit By: economictimes.indiatimes.com

Leave a Reply

Your email address will not be published.