New Delhi, Jan 14 (PTI) Stock market is expected to bemore volatile in 2018 compared to last year due to globalheadwinds like tightening of monetary stance by major centralbanks and increasing crude oil prices, as per industry chamberAssocham.
"Correction in the global indices due to any or all ofthe factors such as - the central banks tightening globally,balance-sheet reduction of the US Fed, pressure on crude oilprices and geo-political risks, among other factors, mayimpact over-bought position in India, China and other emergingmarkets in 2018," an Assocham paper note today said.
It said the market in 2018 may be contrary to 2017 whenas many as 153 initial public offers (IPOs) hit the Indianbourses and raised around USD 11.6 billion.
"The AUM (Asset Under Management) may remain a preferredchoice for investors in 2018 as well, but with the bondmarkets indicating inflationary pressures and their upwardimpact on the interest rates, the dice may favour debt marketand the bank deposits again," the paper said.
During Jan-Dec 2017, the paper said, the domesticinstitutional investors made the record net purchase of Rs90,738.31 crore, whereas foreign institutional investorsregistered net withdrawal of Rs 44,108 crore from India duringthis period.
"In the backdrop of upcoming union budget in thebeginning of February, followed by assembly elections in keystates, the markets may witness greater amount of volatility,"Assocham Secretary General D S Rawat said.
In 2017, the stocks of certain industries such as IT andpharmaceuticals which are based on export businesses remainedunder pressure due to continuing disappointment by theearnings caused by decline of US Dollar to the rupeethroughout the year.
"Which sectors would outplay others is still not clear,"the paper said. PTI PRSBAL.
This is unedited, unformatted feed from the Press Trust of India wire.