Today, the bulls can take it cool as the stress of the last two days may reduce. Wall Street climbed overnight, led by banks, after leaked reports of the much hyped “stress tests” showed no nasty surprises. Regulators are slated to release the results of the stress tests, aimed at assessing banks' overall health, on Thursday. A private survey showed that job losses are slowing. In Asian markets, the Nikkei in Japan is up sharply after a long holiday break. Other regional indices are also up smartly.
This is expected to boost sentiment back home. However, Wednesday’s sell-off shows that one cannot afford to be complacent. The road ahead still remains challenging. Uncertainty over election outcome still looms large even as the 4th phase of elections is underway today. The economic turnaround too may not be as fast and smooth as one would desire. What’s more, the recent rally has already discounted most of the good news on recovery. So, some profit booking cannot be ruled out at higher levels. For now leave the stress aside.
