Markets to remain muted, with stock specific action

There was no respite for the Indian equity markets even in the last week of the calendar year as markets were spooked by the looming long-term capital gains tax statement made by the PM. Even the clarification from the Finance Ministry wasn’t able to calm the nerves of investors on Dalal Street on Monday, December 26. The markets turned red erasing all the gains made in 2016, ending at the lowest point in the year. For the first time since 7-months, the Nifty closed marginally above 7900; whereas Sensex closed tad above 25807 on Monday, December 26.

European markets remained closed on the account of annual Christmas break which also happens to be a bank holiday in most parts.

US stocks too remained shut due to a holiday.

Asian shares gained modestly in trade owing to good industrial profits from the Chinese industries, which rose by 14.5 per cent in the month of November. Both Nikkei and CSI 300 were trading with minor gains on Tuesday, December 27, 2016.

SGX Nifty is trading with gains of 0.14 per cent to the levels of 7922. We expect markets to open flat with a positive bias and may test levels of 7950 on the upside.