Pri Market Commentary ...

Today, the fresh round of monetary and fiscal steps taken by the Government might boost sentiment early on today. In addition, the Centre has also cut prices of petrol and diesel. The fact that the US stocks rallied on Friday despite grim jobs data and firm trend across Asian markets would also help the bulls' cause. What is not certain is whether the cheerful mood lasts longer given the strong headwinds confronting the bulls, both local as well as local.Running away from recession is high on the agenda and the much-hyped fiscal stimulus package is out in the open.


For instance, though the RBI has slashed rates aggressively, only a couple of banks have so far announced reduction in borrowing costs, and that too marginally.For the fiscal stimulus, so far, only auto, steel and cement companies have committed to pass on the benefit from lower excise duty. Others are still on a "wait-and-watch" mode.


Expect a lot of select sector and stock specific action today, based on the benefits accruing to them from the monetary and fiscal stimulus. Overall, we expect the market to remain choppy and rangebound after an initial spurt. Trend in global markets will of course continue to have a say in the market's direction, as will the outcome of state polls. Even if there is a strong rally, one should not get carried away as the fiscal stimulus and rate cuts may not be enough to boost economic growth, especially if the pain in the global markets doesn't show any sign of easing.