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Below is Perspective on Market by Dr. Joseph Thomas, Head of Research, Emkay Wealth Management.

“Except for Metals and Oil and Gas , the market picked up steam to trade higher, and all the frontline indexes posted gains during the trading session today. While the anti- inflationary policy and the consequent fears of an impending economic slowdown put pressure on market prices in the early part of the week, the latter part saw measures being announced by several governments to uplift the economic momentum. In India, the cut in fuel tax followed by a hike of 15 % export duty on steel intermediates, and the lowering of import duty on coking coal and ferronickel, and the earlier announcement of ban on wheat exports, helped bring in some amount of stability to the markets as these are all going to help reduce domestic price level. Several other measures may also be announced soon. The UK government has imposed a windfall gains tax on oil companies to spruce up the tax receipts, and similar measures may be on the anvil in many other countries. These positive sentiments may continue to influence the trajectory of markets in the coming weeks, but the likely further hikes in the base rates could serve to dampen this after a while. With the corrections seen so far stocks offer good value for long term investors.”      

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