Today, we expect the market to remain cautious amid mixed global trends. Intra-day swings are a given in an expiry week.Despite all the big gains, the market environment remains ever so fragile. It took just one bad news about a possible flu epidemic to rock investors’ confidence worldwide. But, India managed to emerge largely unscathed from the global scare over the spread of swine flu. Still, there is no scope for any complacency.
We’ve already had a sharp rally. In fact, the Indian market has outperformed major world indices. There hasn’t been any meaningful correction either. All the possible good news is already in the price. And, we are only talking about tentative signs of improvement. So, the upside from here looks limited. That doesn’t mean stocks will collapse, but some softening is imminent. Therefore, one needs to be little careful. The outcome of the Lok Sabha elections could be a trigger. Global markets could also throw up some negative surprises.
We’ve already had a sharp rally. In fact, the Indian market has outperformed major world indices. There hasn’t been any meaningful correction either. All the possible good news is already in the price. And, we are only talking about tentative signs of improvement. So, the upside from here looks limited. That doesn’t mean stocks will collapse, but some softening is imminent. Therefore, one needs to be little careful. The outcome of the Lok Sabha elections could be a trigger. Global markets could also throw up some negative surprises.
