Today, we expect the market to continue Tuesday’s pull-back, as global markets are in buoyant mood. US stocks rallied overnight after Monday mayhem. But, European indices fell for a fifth session in a row. Asian markets are up 1-3% this morning.
The new stimulus plan doesn’t guarantee an immediate rebound in economic activity and partly hinges on the recovery in key global economies. Better late than never, that’s what we would like to call the rather belated announcement on the latest fiscal booster shot.
There is scope for a brief rally if India Inc passes on the benefit of cuts announced by the government. The RBI’s much-anticipated rate cuts will provide a temporary booster too.
