DSIJ Mindshare

Indian shares are expected to make a flat to marginally positive start. The SGX Nifty indicates that the Nifty could open at 10,486 with gains of 17 points at the opening bell.   

The New Year started on good note as the eight core sectors data for the month of November 2017 posted a 13-month high growth of 6.8 per cent year-over-year versus 5 per cent in the month of October. With the improvement in non-food credit, we see the economy heading towards pre-demonetization level.

The debt market is already anticipating a rate hike of around 30-40bps and is being discounted in the current yield curve. Thus, keeping this in mind one should not invest in long-term debt funds until there is clarity about the interest rate and future trajectory of bond yields.

Going forward production of Robusta in India is expected to come down by ~20 per cent compared to 13.96 per cent (30,300 MT) as per the estimation of the Coffee Board.