Stocks may witness global, domestic headwinds in 2018: ASSOCHAM

Stocks may witness global, domestic headwinds in 2018: ASSOCHAM

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The year 2017 may have gone as the golden period for Indian stock market, in sync with the major economies of the world, global headwinds like tightening of monetary stance by major central banks and increasing crude oil prices , coupled with domestic concerns like firming inflation could halt the underlying bull run in 2018 and bring in lot more volatility going forward, an ASSOCHAM Paper has indicated.

“Correction in the global indices due to any or all of the factors such as- the central banks tightening globally, balance-sheet reduction of the US Fed, pressure on crude oil prices and geo-political risks , among other factors, may impact overbought position in India , China and other Emerging Markets in 2018”, the paper noted.

The year 2017 had been a golden year for IPOs with as many as 153 initial public offers (IPOs) hitting the Indian stock market, raising around USD 11.6 billion and large number of the issues were over-subscribed.

“In the backdrop of upcoming union budget in the beginning of February, followed by assembly elections in key states, the markets may witness greater amount of volatility,” said ASSOCHAM Secretary General D S Rawat.