Market to retain gains if Govt follows up with reforms, says UTI

The stock market is likely to be range-bound in the near term unless the Government succeeds in implementing the rash of reform measures announced this month to help boost investment and curtail fiscal deficit, a top fund house said today.

“On international liquidity, going by the past experiences of QEs (quantitative easing), the Sensex may not retain all gains in the near-term. Support can only be through quick remedial action by the Government in areas of fiscal discipline and promoting investment recovery,” UTI Mutual Fund Senior Vice-President and Research Head Lalit Nambiar told PTI.

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At present, the Sensex is hovering around 18,700, a 14 -month high, while the NSE benchmark Nifty is at around 5,660 level on the back of a slew of policy measures announced by the Government, including allowing FDI in multi-brand retail and civil aviation.

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PTI