Today, the key indices could regain their footing after US stocks managed to hold their own. European shares too recovered from day’s lows. Most Asian markets are up this morning. However, it remains to be seen if the global markets can hold their gains for long given the strong economic headwinds.Populism seems to be gaining ground, with the announcement on Lok Sabha polls expected anytime now. After the fuel price cut, the Government now wants nationalised banks to lower rates further.
PNB has already cut its PLR while SBI has unveiled a special home loan scheme. Some more state-run banks may give into the Centre’s demands. Whether private banks will follow suit or not is not clear as yet. On the whole, we expect the market to be sideways in a tight range in the near term.
