Market Commnetary ...

Today,we expect the market's initial reaction to be down in the wake of the terrorist attacks in Mumbai. But, with US markets rising smartly on Wednesday and a follow up advance in other global markets, the sentiment may improve later in the day. However, Asian markets are trading mixed today. US markets were shut on Thursday due to Thanksgiving and will open only for half a day today.

We'll also have F&O expiry for the November series, which will add to the volatility. So, we advise investors to stay on the sidelines and not take undue risks till the dust settles on the terrorist strikes. However, history has shown that the markets do rebound after an initial knee-jerk reaction down post any such negative events.

Also, inflation has come down for the third successive week to 8.84% and is likely to fall further over the next few weeks. There have been expectations of further easing in monetary policy for some time after inflation fell into single digits. This may come true following the Mumbai terrorist attacks, as the government tries to shore up the market sentiment.