Today, we expect a cautious opening today due to weakness in other Asian markets. Things may turn a bit volatile and uncertain after that. There is neither certainty nor clarity in our markets. This holds true even for the Singur issue. Despite reports of the stalemate ending, it now seems that the Nano manufacturers could say Tata to Singur as returning land would make the project unviable. Tata Motors expressed its distress at the limited clarity on the outcome. Don’t’ dismiss this issue as just a battle between one corporate versus the powers that be. Companies like Infosys may rethink their plans for
The underperformance of the broader market, coupled with the cautiousness of FIIs and uncertainties over local as well as global factors could put a lid on a sharp rally from here. Variables like movement in crude oil prices and local inflation will continue to decide the mood of the market.
