Today, we expect the market to open on a weak note yet again given the sharp losses in Asian markets, which are down 3-4%. For the day, the key indices movement will hinge on the outcome of today's SEBI meeting. It is not clear whether the announcement from the market watchdog will be during or after market hours. We would continue to advise caution at this juncture, though valuations are quite compelling. Look at some shopping at lower levels. Remember, that beyond the mountains, there are mountains again. So, keep some cash handy, as there is no guarantee that we have hit a bottom.
Today, the clearance of the Indo-US nuclear deal is a positive for Indian market and the Senate acceptance of the bailout package also translates into some hope. However, the bailout still needs clearance from the US House of Representatives, which had rejected it earlier on Monday. So worries and uncertain times continue to linger over the global financial markets.The Dow Jones fell sharply overnight as weak economic reports contributed nervousness ahead of the House vote on the US$700bn bank rescue plan later on Friday. A positive outcome will help in restoring confidence in the financial markets. Until that happens, one must remain careful and keep a close watch on developments underway in the US.
