Markets may be weak due to Trump announcement

Blog meant for 23 Jan 2017 Monday

Dear friends,

Nifty fell by 85 points as a run up to Donald Trump being sworn in as US President.
On Friday, Donald Trump in his inaugural speech said that he will work towards the betterment of US Citizens and US companies with a slogan “Buy American & Hire American.

If he takes steps to fulfil this policy, many of the global IT Companies including Indian IT Companies such as TCS, Infosys, Wipro etc may be affected.

However, we have to wait and see what he does to encourage US Companies and how he plans to restrict foreign companies from doing too much business in the US.`

Markets may be little weak due to that announcement. We have to wait and see how our markets react.

The indications for short term are –

THE HOLDS ARE-  L&T, ITC, MARUTI, TITAN, HDFC BANK, ASIAN PAINT, SBI

THE DON’T BUY NOW ARE- DIVISLAB, ONGC, RELIANCE, TCS

WAIT TO SELL – BHEL

SELL – M&M, SBI, HDFC, AXIS BANK, LUPIN

Hope you are investing for long term on a monthly basis. Do not get distracted and affected by short term news and fluctuations. Suppose, you invest today and forget about the investment for the next 10 years, most times the big announcements that were made will hardly have any impact on the performance of businesses and stock markets over the long term. They would only look significant at the current moment.

All the best!

Dr.Bharath Chandra