Today,we are in for another lackluster day. All that glitters in terms of investment remains Gold, which surged for the third straight day gaining almost 20% (in Mumbai) since Jan 16. The change in settlement schedules due to Friday’s strike by RBI employees and Monday’s public holiday could add to meaningless swings.
On the global front, Asian markets are mixed and volatile. The US stocks closed nearly unchanged, despite President Obama’s $275bn plan to stem foreclosures. The Federal Reserve however has cut its growth forecast for this year. European shares declined for a third consecutive day.
Given the uncertain backdrop and gloomy macro-economic scenario, we don’t see the Indian market making much headway in the near term. A sideways movement within a range of a few hundred points (on Nifty) appears more likely. There is no clear direction until we get fresh news-flow (bad or good) either locally or globally. Inflation data will be out later today, and a further slide in it is a given. However, it may not have a big impact on sentiment.
