Pri-Market Commentary!

Today, we see the market extending this week's fall due to weakness in US and Asian stocks, and oil prices hitting new record high. Indian ADRs tumbled, losing between 2-6.5%. The dearth of any near-term positive triggers coupled with erratic movement in FII flows and local inflation concerns would also keep the bulls on tenterhooks. The market is likely to consolidate for a while before breaking out on either side.

We maintain that the key indices will remain rangebound within a few hundred points in the near term, as investors take stock of the situation after last month's rally. A major crash may not happen unless we get fresh bout of bad news from overseas or local markets. A stock specific approach is perhaps the most prudent way of tackling the current uncertainties.