After a choppy CY18 so far, will markets see Santa Claus rally in December?

While analysts agree outlook for equities as an asset class remains strong, the markets may not see a runaway rally from here on in the near - term

It has been a choppy calendar year 2018 (CY18) thus far for the markets. The S&P BSE Sensex has moved up nearly 6 per cent on a year-to-date basis after a stellar rise of 28 per cent in CY17.

Confusion over long-term capital gains tax in the Budget, rate hikes by the US Federal Reserve, trade war fears, wobbly FII and mutual fund flows in the equity segment, spiralling crude oil prices, pressure on macros (fiscal and current accounts), fall in rupee and the crisis in the bank and non-bank finance segments were among the key factors that impacted sentiment