Markets flared up. Indices skyrocketed. Nifty surpassed its previous peak of 9119, hit on March 04, 2015, by touching 9,122 in the intra-day trading before closing at 9087, still up 152 points. The S&P BSE Sensex, too, zoomed by 496 points to close at 29,443, which is short of 582 points to its lifetime high of 30,025. The buoyancy in the market on Tuesday, the first trading day after the results, is because of the investors’ improved confidence over Modi’s chances for a second-coming in the 2019 general elections after the landslide victory in UP. These elections proved that demonetization had not impacted the people negatively.
Moreover, these elections will strengthen BJP in the Rajya Sabha, thus, paving way for important legislations to get passed. It means the economic reforms will gain momentum with no hindrance. Foreign investors’ confidence in the Indian markets will improve leaps and bounds. The unabated flow of foreign direct investments (FDI) into the economy will buoy the market sentiment. Now let us look at the changing political scene in the south. The new equations in Tamil Nadu following the sudden demise of Jaya Lalita, the inevitable dependence of both the Telugu States on the centre, the growing popularity of BJP in Odisha, and the regained past glory in Karnataka… all these factors will add to the party’s 2019-electoral gains in the south, where its position is frail. Thus, the chances for the political stability even after the next general elections are very high. This stability at the centre must rewrite the history of markets.
We are going to have sufficient rains this year also, as per international metrological agencies. The impact of El Nino phenomena, which disturbs the Indian monsoons, will only occur after the September, by that time the country receives 70% of the monsoon rainfall. So, crops will not get impacted negatively.
The official statistics like industrial production, wholesale prices hitherto base on 2005-06 prices. Now this base year changed to 2011-12. Moreover, we will get these statistical figures on 12th of every month. This base-year change will reflect the changes in the economy with more accuracy, thus, making the economic decisions more realistic with proper direction.
D-Mart’s Initial Public Offer was a big bang success. While the offered shares are 4.43 crores, the demand exceeded 463.76 crores. While the retail segment subscribed by about 7.35 times, the qualified institutional investors applied for shares that are 144.6 times the quota fixed for them and the high net worth investors (HNI) quota was oversubscribed by 277 times. We need not specifically say that the listing of D-Mart IPO will have a rub-off and spill over effects on the existing retail stocks. Since the multi-brand products’ retail firm attracted so much response, the FDIs will now flow into single brand retail outlet companies as their targets.
The future of the Future Group, which built its business empire based on the retail sector, will be so bright. The group companies are getting out of the paucity of funds to surplus money. With the newly achieved stability, these firms are ahead of the rivals in the market with their surplus funds and private equity investments. Future Enterprises Ltd, having the holding company structure, is going to reduce the debt burden to a greater extent with the capital gains that accrue through the sale of shares in the insurance companies. The stock of this company may gain 50% in six months.
The Future Consumer Ltd, which is operating based on food sector with its own brands, own products, multi-brands, multi-products, and own distribution network, is gearing up to reach Rs 20,000 crore turnover with a target of 8% net profit margin.
One more development is that the group is all set to transfer all the stakes of Future Lifestyle Fashions Ltd to the holding company as a part of a mega restructuring. On the other hand, Future Retail Ltd is earning huge profits. Even the Future Market Networks Ltd is also faring well and reducing the losses. Like Future Enterprises Ltd, Future Consumer Ltd can give good returns in one year. one can invest in the company without any fear of loss.
The industrial production has recovered to 2.7% in January 2017 from the 0.1% in December 2016. The output of passenger cars is going to cross 3 million units milestone for the first time. In the coming one year, India is poised for a global second place after China. Future is perfect. Growth is continuous.