Eight events which can push Sensex, Nifty higher in 2017

If one talks to equity fund managers on the street, most of the them are trying to remain positive but aren't ready to stick there neck out to say with certainty that the index will end positive at the end of December 2017.

According to Kotak AMC, the game has become more stock specific and what can push Sensex, Nifty up in CY2017 is a mix of global and domestic events. Here is a list of events which can push the markets higher in 2017.

Global Events:

1. US Fed Rate: Can go up by 25 to 50 basis points but not 75 basis points, what the US Fed has indicated.

2. Crude has to be in the range of $40 to $60 per barrel.

3. Chinese currency: Can't afford the Renminbi to depreciate to a huge extent. Concerns are over China Credit Bubble. "One can't create growth by leveraging. On $4 of debt the GDP is growing by $1. If this bubble bust it could be lot of pain across the globe and India will not be different," says Nilesh Shah, MD & CEO at Kotak AMC.

4. No major banking crisis in the Euro-zone.

Domestic Events:

5. Reserve Bank of India (RBI) to keep ample liquidity in the system and cut rates by 25 to 75 bps in CY2017. "We see RBI in its February policy to cut policy rate by 25 bps," Shah says.

6. Innovative Budget which will keep money in the hands of people for increasing consumption but keeping in mind the commitment on fiscal deficit at 3 per cent in FY2018.

7. State election result, especially UP election.

8. A good roll out of GST and adhering to its new date of July 2017.