How will the UK general election, impact of US withdrawal from Paris Accord, economic data from US, industrial data from Indian and GST implementation news impact Indian stock markets in the week beginning June 5, 2017?

Edited Highlights
Udayan Ray
0:24 What are the most important factors that will drive the markets next week?

1:41 What are the 2-3 major factors that will drive the Indian markets next week?

Sunil Kewalramani
2:09 The UK has elections on June 8 and PM Theresa May is trying to increase her seats.

2:16 That is coming into questions since her lead in opinion polls is narrowing

2:24 If she were to lose seats, Britain would become weaker in negotiating Brexit terms with European Union. That could rattle stock markets all over the world

2:32 I think this week will definitely centred around the UK election

3:01 US President Donald Trump has withdrawn from the Paris Accord. It has increased tensions around the world

3:02 If this keeps increasing, there will be more signs of de-globalisation

3:08 Latest US jobs data showed a slowing down of the American economy

3:12 Federal Reserve was supposed to raise interest rate twice but now there is talk of a pause in interest rate hike

3:20 This might lead to slow down of movement of funds to the US and emerging economies will benefit

3:28 Look out for signs of slowing down of economies of America and other economies

3:38 I personally feel that the global economy will slow down from here

3:46 Indian growth story is also slowing down. There has been a significant effect of demonetization on GDP numbers

3:58 Look out IIP (Index of Industrial Production) numbers

4:01 If that is also going to show the same thing, you have another part of the world slowing down substantially

Udayan Ray
4:16 Are there any domestic factors that you think will play out next week and impact the markets?

Sunil Kewalramani
4:26 The growth in India is also slowing down

4:28 It is not only the demonetization but also the GST implementation

4:36 GST is going to be very beneficial, especially for multinational companies, as they will be able to move things seamlessly across borders

4:43 But it is going to be fairly disruptive in terms of preparedness for small and medium enterprises

4:51 There are many issues that remain unresolved

5:00 For instance, inverted duty structure in many categories will mean tax refunds, locking of working capital

5:27 There will be teething troubles that are not being considered when people are discussing the GST issue

5:52 The GST implementation is likely to create problems, contributing to the further slowing down of the economy.

6:00 While it is not apparent but the world economy is slowing down