Pri Market Commentary ...

Today, we expect the market could open on a positive note, as Asian markets have rebounded from a weak start and US stocks too ended higher on Monday's shortened session.As far as outlook for the markets is concerned, the undertone will remain fragile and nervous.


We expect the market to remain highly volatile, depending on the type of news flow and the behaviour of the global markets. Although the volatility is likely to continue for the foreseeable future, global equities could manage a rally near the end of this year or start of the next year.

Another positive is the comparatively low valuations. But the negative is that there really is no catalyst that can sustain any advance. The global economy is still weakening, and there is fear that more bad news could come going ahead. Though one may say that a lot of bad news has been factored in already, any bounce will most likely be a bear market spurt rather than the beginning of a new bull run. For that to happen, we need a change in perception of global investors who at present remain risk averse. Back home, we also need to keep an eye on the fast changing political landscape.We continue to advise caution at this stage.

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