Today,we expect a steep fall in opening trades as bulls yield to the global trend. A pull-back to positive zone seems less likely.Well, the much-awaited Washington events are finally out of the way. The new bank bailout plan and the passing of the stimulus bill in the Senate were not received too well by Wall Street. US indices slumped over 4% each with the S&P 500 bearing the brunt of the sell-off.
European shares ended 2-3% down. Asian markets, barring the Hang Seng, are relatively better off this morning.Any hope could come on expectations that the Government may announce further stimulus measures in Monday’s interim budget. Top government officials are hinting at sector-centric sops in the vote-on-account. And if media reports are anything to go by, Real Estate, Auto and IT sectors are likely to be major beneficiaries. Meanwhile, the IIP data for December is likely to be better than the past couple of months. Inflation may also soften a bit further.
We see the key indices losing recent momentum and turn sideways again, even if the Government announces more stimulus measures.A lot would depend upon the Obama administration’s stimulus package.
Also being eagerly awaited is the unveiling of a revamped bank rescue plan. Both the key events would take place later today in the US. So, the global cues would be playing an important role in dictating the trend atleast in the opening trades.
