Today is Makar Sankranti Northpole team wish you all Happy Makar Sankranti, Pongal and Lohri. This day the Sun changes its position from one sign of the Zodiac to the other and is considered auspicious as it coincides with the harvest season and marks the end of the winter season. We have gone through many auspicious days only to get rattled later. But the market is likely to see some bounce today given the firm trend across Asian markets amid growing anxiety over corporate governance issues. What remains to be seen is whether the market will be able to sustain the early advance. So, let go of the kites when they are high lest you have to feel the pain of seeing it get cut.
Tuesday saw a few stocks plunge intra-day amid a plethora of market rumours about these companies' financial management. Though some of them have sought to assuage investor concerns about possible financial irregularities, the market will remain jittery about these issues in the wake of the Satyam scandal.
Coming to the broader market, the traded volume and the turnover have taken a hit in the wake of the sordid Satyam episode and lack of clarity on the near-term market direction. With the earnings season just starting to pick up, the mood will remain cautious with alternate bouts of buying and selling. Given this backdrop, one should remain guarded though valuations may well appear mouth-watering. One can still indulge in select stock- specific buying, though. But that should be restricted to quality stocks and only for long-term purpose.
