Today the markets closed lower. The BSE Sensex closed 231 points lower at 25886 and Nifty closed 67 points lower at 7864.The unfortunate floods in Chennai will affect automobile Plants so the operations to result in normalcy will take time in the Auto Sector. The much awaited Goods and Service tax might be passed with the opposition co-operating.
Though not noticeable in our daily life, it is said that Inflation has come down and consumption has gone up.Examples are petrol has become cheaper and the sustained demand by cars and scooters has increased its demand.This might lead to appreciation of auto stocks. As aviaton fuel has become cheap there is a 20% increase in Airline traffic which will lead to surge in Airline stocks.Banks stuck with sticky loans are lending to retail more.
Thus, stocks like FMCG, Paints, Consumer durables,will go up due to more demand as more money is there in hands of people. The opinions are mixed some people say the results of companies are lack lustre so Markets will be mixed so we have to watch particular stocks only to make gains. HAPPY TRADING AND INVESTING
