Today, the bulls would most likely extend Friday’s gains on firm global trend. A positive opening on Monday is more than a welcome sign. The next few days and perhaps weeks will see hectic action. A number of key events are lined up, both locally as well as globally. The Congress and the BJP have kicked off the campaigns for the upcoming Lok Sabha polls.
The Government is also busy preparing the vote-on-account, which may include fresh measures to stimulate the economy. According to a business news channel, the Government is set to announce FY09 GDP data today. The IIP data for December will be out on Thursday. The barometer for the manufacturing sector should stay in the positive zone for the second month after dipping in the red in October. The US Senate is set to vote on Obama regime’s new stimulus plan on Tuesday. A revamped bank rescue package is also slated for the same day.
Global equities could rally if these two events pass off without much trouble. However, one should not get carried away with any big advance. It would be prudent to sell into any rally. The earnings season is yet to wind up in the US and rest of the world. Any negative surprise could spook the sentiment.
