The equity markets performed extremely well in the past few days . More so if we consider in the context of the negative news flows.
Interest rates : We had Fed raise interest rates by 25 bps , also it made it clear that there will be further rate hikes going forward . However it assured the financial markets that any rate hike will be data dependent . Thus there is pre programmed rate hike time schedule .
Oil : Oil is in a very oversupply situation . US has allowed the export of oil . While this will only have marginal effect on the global markets it will be a sentiment negative for this market. A low Oil price is good news for net importers of Oil like India, however only upto a certain point .
GST and other important reforms in India : The consensus amongst political opponents in India looks more elusive than ever before . Thus the possibility of speedy reforms to kick start the growth will be difficult .
Today can expect the euphoria in the equity market to subside as reality sinks in . Expect a low opening for Indian Equity markets .
Rupee with the RBI support may remain stable for now .
The question is for how long can Rupee avoid some serious softening ?
What will be your Rupee target by March 2016 ? A) 65 B) 68 C) Above 70 d) None of the above .