Today,we expect the key indices to pull back after Thursday’s fall. The US market erased losses and turned higher late in the session on reports that the Obama regime was preparing a plan to subsidize mortgages of troubled home owners. European indices fell for a third straight day on Thursday. The good thing for India is that most Asian markets are up smartly this morning.
However, the overall mood still remains glum and any advance is unlikely to sustain for long. For now ride the Popular Express but don’t forget to get off when you reach your destination.Populist measures may be signaled off today with the interim railway budget doling out some stuff to keep voters on track. At the same time, the Government will incorporate further stimulus measures to accelerate economic growth during the vote-on-account on Monday. There may be some sops for sectors like Housing, Infra, IT, Auto and export-centric industries. Some tinkering with indirect taxes may also be on the cards to bolster spending. As a result, the market may turn a little higher after this week’s setback.
