The Winter Session that will begin from Nov 26th, will be closely monitored, especially in light of the government’s recent reformist announcement. (Express photo by Anil Sharma)
Key benchmark indices have plunged over 5 per cent since the beginning of the ongoing calendar year due to China currency devaluation, corporate earnings, Bihar election results and other global events. The tumbling benchmark indices Sensex and Nifty are now eyeing the Winter session of Parliament for further direction, which will see important bills like Goods and Services Tax (GST) and Land bills tabling. The Winter session is due to begin on November 26.
The government has pressed the accelerator on reforms in November ahead of the Winter session. Market analysts believe the upcoming Parliament session will keep Sensex and Nifty highly volatile.
The launch of new State Electricity Board reform scheme (UDAY), steps to fast track stuck projects, a possible resolution to long-pending tax disputes and corporate tax reforms are some of the measures that the government has pushed in last few days. Also, the government has approached the Opposition for GST in a bid to get the critical reforms passed this Winter Session.
According to Dun & Bradstreet, the progress of Winter session of the Parliament are expected to impact business optimism and investors confidence amid concerns over muted investment and subdued rural demand which posed another threat to the recovery process.
For the upcoming Parliament session, Alex Mathews, head, research, Geojit BNP Paribas Financial said, “Markets are likely to remain high volatile during the upcoming Parliament session. However, we can see some downfall during the first-three days of session. Stock of non-alcoholic beverages manufacturers, auto, FMCG and logistics will remain in focus during the period.
The government is expected to table GST and Land bills, which are crucial for the next round of reforms. However, stock market experts are not expecting smooth functioning of the Winter session of Parliament as after the Bihar election fiasco for the BJP, the Opposition would be on the front foot.
G Chokkalingam, founder, Equinomics Research said, “There will be a lot of noise. GST bill will be delayed. Market will remain range bound not because of the Parliament issue. It needs triggers from global factors in terms of receding fear on global deflation and on domestic front in terms of positive earning outlook for index stocks. Fed rate hike would give some comfort on former. By end of December industrial and corporate earnings would start improving.”
Ambareesh Baliga, independent market expert said, “We could see a continuous logjam, unless the BJP takes an accommodative stance. The important bills going thorough is a pipe dream but the silver lining for the markets is the expectation levels are low. So any positive developments will be welcomed with a rally.”
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