Pre Market Commentary...

Today, with global markets in the pink of health, we expect India to follow in their footsteps. The key indices will open in the green, in line with the advance across other Asian markets. It remains to be seen if the initial gains can be sustained as most players would like to remain cautious ahead of the Union Budget, on July 6. The Economic Survey will be presented in parliament on Thursday while the Railway Budget will be announced on Friday.

It is up to the Government to nurture the green shoots of economic recovery given that a few headwinds (both local and global) are yet to be weathered. The Budget of course will be an important event for the UPA to convey its policy intent at least for the current fiscal. Investors are also bracing for the latest batch of quarterly results that could provide further insight into the health of Indian companies. One should also keep an eye on corporate earnings across the world to have a better understanding of the global situation.

US stocks rallied overnight amid expectations that key reports on unemployment and manufacturing will show further signs of improvement in economic conditions. The US market will be shut on Friday, as July 4 falls on a Saturday. The jobs data will be unveiled on Thursday.