One should be extremely careful while buying scrips with questionable background. In any case, there are enough doubts whether the recent spurt in the market can sustain given the uncertain environment and lack of strong FII inflows.
Continuous fall in inflation may bring some cheer, as it heightens expectations of rate cuts. But one cannot overlook other weak data points like the BoP slipping into a deficit and exports falling for a second month. Auto sales remained sluggish in December. Reports say the Government may announce its second stimulus package on Saturday. There is no official confirmation of the same. The RBI may also join the pump-priming effort, but by how much is the moot point. Even if the anticipated events do materialise, they may provide only a temporary fillip. Anxiety over corporate earnings may takeover after a brief rally.
Most global markets were shut for New Year on Thursday.
