Today, we expect the key indices to open higher, spurred by the advance in most global markets. Volatility will remain elevated due to the F&O expiry. Since the immediate outlook is still a little murky, one should adopt a wait-n-watch approach. Stock centric action may continue though.The Federal Reserve is positive about the prospects of the US economy and has left key rates unchanged. It no longer sees any threat from deflation while inflation is likely to remain subdued for some time.Meanwhile, the government has scalded down its monsoon forecast, from ‘near normal’, to ‘below normal’.
There is no need to press the panic button as yet. In fact, if all things fall into place, including monsoon and budget, FY10 GDP growth could even spring a pleasant surprise.
There is no need to press the panic button as yet. In fact, if all things fall into place, including monsoon and budget, FY10 GDP growth could even spring a pleasant surprise.
At present though, the market appears to be in no-man’s-land.This trend may prevail till at least the budget. Earnings will also have some say for sure. Among the other key variables include: global cues and mood of the FIIs. Lately, the foreign funds have turned cautious. Local funds are having other plans.
