Pre Market Commentary ..

Today, after bright starts and finishes for two days, the bulls may find the heat and light a little glaring to handle. Despite smart gains in the main indices the broader market has cooled off. While time seems overripe for frontline stocks to also ease a little, the spotlight will remain on select counters. While US indices fell, European markets did manage some gains, largely owing to strength in commodity shares. We expect a flat opening and a choppy day.

Spurt in crude and other commodities has once again brought inflation into the spotlight, which could dip to its lowest levels. Concerns have also grown over hardening of interest rates in bond markets. Govt may overshoot its estimated borrowings and fiscal deficit could widen.


Subdued credit growth is another worry. Monsoon could be lower than expected. Budget may disappoint. Exports are sliding. Fundamentals of India Inc. are yet to catch up with the surge in stocks. Considering these headwinds, one may argue that the recent run-up has gone too far, too fast. On the bright side, the downside may not be scary.