Where To Invest In 2017!

Neerja Agarwal and Yogesh Supekar team up with Lohit Bharambe and create this 2017 portfolio for DSIJ reader-investors.

- 

Indian equity markets are in one of their most interesting phases in 2016. There was clamour for more economic reforms in India and India did get one in the form of demonetisation, which almost shook the whole nation.

Demonetisation, which virtually bought the economy to a standstill, has been touted as extremely beneficial in the long run, but it might have almost pushed the Indian equity markets into a strangulating bear hug.

The prices of stocks climbed considerably high till the month of September from its lows made in the month of February of 2016. Markets gained by almost 20 per cent in just 7 months in 2016, which also was the highlight of the year until two events affected the market sentiment negatively, viz., the US presidential election and the demonetisation move that made use of ₹500 and ₹1000 currency notes illegal after November 8th midnight.

Till demonetisation happened, the markets had focused on corporate earnings and the developments on the gross and net non-performing assets (NPAs) affecting the banking industry as a whole, along with the GST.

Even as the banking system is not yet out of woods with the NPA situation, the turbulence caused by demonetisation for the banking operations do not augur well for the profitability of both public and private sector banks.

The year 2016 (Jan-Nov) was one of the great years for the IPO investors as the year saw a very good number of quality IPO issues hitting the markets and listing at hefty premiums. In total, 88 IPOs succeeded during the said period, with just one issue failing. Fresh capital to the tune of ₹21,500 crore was raised by these 88 companies.