This week promises to very eventful .
Fed rate hike
We have been talking about this for ages now. The Fed is expected to raise interest rates by 25 bps this week. Hopefully Fed will try to assure the market further rate hike, as and when it happens will only be after substantial improvement in global economy .
The end of Oil ?
Are we at the inflection point without realizing the same ? Is this the end of all fossil fuels ? Two apparently disconnected things happened in last week .
Oil settled at USD 35.62 about 10 % fall over the week !
Paris climate agreement , where a consensus was achieved .
Back home Delhi has woken up to the menace of pollution.
The world is in broad agreement on the need to move towards alternative energy and cleaner technology .
It also means that a large part of the coal assets of the world will have to be left underground and cannot be utilized . Time to take a relook at the valuations of Glencore , Ango American and BHPs of the world ?
India economy continues to do well :The industrial growth on the back of an impressive double digit expansion in manufacturing are signs of the robustness of the economy.
Indian equity market along with other with other equity markets will continue to be in doldrums for now. We will prefer to wait till more clarity comes from the Fed.
For traders initiating new short positions on the NIfty and maintaining previous short positions can be initiated .
Long term investors can use the market correction to start building their portfolio . These are the times to look for bargains in evergreen stocks like HLL, Colgate and HDFC .