Best Stocks To Buy For 2017 By SBi-Caps

The above developments have led to a 6.2% growth in Sensex from the Diwali Week 2015 to Diwali Week 2016. The Indian equity market stand tall amidst numerous global and India specific headwinds like geopolitical risks, Brexit fallout, downward revision of global growth outlook, liberal monetary policy of developed world and uncertainty over Fed rate hike etc.

We believe the coming year will be more fruitful due to a) Recovering Indian earnings trajectory, b) Strengthening Banking system with regards to asset quality, c) Rising rural demand on favourable monsoons, d) lowering inflation that provides room for further rate cut, e) Easing taxation due to GST rollout from FY18 onwards, f) Improving ease of doing business, g) Continuing FII inflows consequent to India being ranked a top FDI destination followed by USA and China and h) Encouraging macroeconomic indicators.

In all this, the valuations are just about right, not very costly but not cheap either. Therefore it is prudent to be lay one’s bets on a stock specific basis to weather the volatility out.