Will options exipry next week, along with GST rollout hiccups along with global factors impact stock markets? Are we heading for a global market correction? Website: www.fundoomoney.com Sunil Kewalramani Links
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Edited Highlights 1:46 Sunil, stock markets scaled new highs even as notes of caution are coming from the West. What can we expect next week?
2:18 Most of the week's rally has been due to short covering after the banning of participatory notes
2:35 Growth has been slowing down in the economy. The IIP numbers are showing paltry industrial growth.
2:49 The ground reality of the GST rollout is showing some disruption in the supply chain
3:06 The goods are not moving as quickly and orders are getting delayed
3:10 While I remain bullish in the long term on the India story, but in the short term I believe the market has run ahead of fundamentals
3:19 In the short term, we see some correction coming in
3:25 Next week there is options expiration. The market was in the red on Friday and this trend should continue next week
3:40 In the next month or so, time is ripe for a good correction
3:44 The correction will present opportunity in investing in fantastic stocks
3:59 A quick word on IT stocks, especially after the results declared by TCS and Infosys this week
4:35 IT companies are themselves admitting that when there is a gigantic change in their business model, there is bound to be some pain
4:50 There is going to be a lot of pain going forward
5:05 There is definitely stress on IT companies and their model is broken
5:10 The model is moving towards cloud computing and artificial intelligence and the lay-offs are increasing
5:30 Rise in IT stocks this week has been purely due to short covering
5:37 TCS results are disappointing and Infosys results are marginally better
5:47 Other IT companies will declare results and I think it will take IT companies to mend their business model
6:31 The generics story is not over for Indian pharma companies but there is another problem
6:43 The ANDA approvals are increasing. The US government is trying to bring down the cost of drugs by hastening the process of approvals
7:00 There could be a price war among generic companies and there could be price erosion
7:18 So, pharma story looks good since it has been beaten down dramatically
7:23 On a relative basis, it is much better than other players like NBFCs which have rich valuations
