Today,we expect a flat to cautious start today due to the indecisive trend across the globe. A small rebound is not ruled out if global markets oblige. The best strategy right now is to sit on the sidelines till the budget. One will also need to grapple with India Inc.’s latest report card.
Last time around the Fed chairman spoke of green shoots and sowed the hope of recovery. This time though, there is some apprehension as to how many of the sprouts will survive the unpredictable weather in the months ahead. The Fed’s two-day meet ends later today.
Markets are looking for the Fed to outline its expectations on the US economy and signal when it might raise interest rates. But, a close mate of Bernanke says the US central bank is unlikely to rush into any "exit strategy" from current policy just yet.
On the domestic front, FIIs have turned net sellers lately, bringing the rupee near crucial support levels of 49 to the dollar.
The current yo-yo trend is likely to continue in the near term, though the medium- to long-term outlook is broadly encouraging.
