Today after a flat start, the indices will swing mostly to global cues. A recovery may be always on the cards but avoid getting in stocks which appear ripe after the recent run. The dangerous mid-caps may be back on the shopping list even though the risk-reward ratio remains lower for now.
It was darkness after dawn as a thick cloud cover over India and China hid the sun when the eclipse began. The market too had its share of darkness and choppiness. The outlook remains hazy as investors search new reasons to justify their stand on equity investment.
Asian markets are mixed just like the US indices. The Nasdaq managed to close in the green for the 11th straight session as Apple's profits nourished the bulls. But Boeing descended and Coca-Cola's profits lost its fizz. The Dow closed in the red while S&P 500 was flat.
Nouriel Roubini, who’s claim to fame is for predicting the current collapse, said the economy is turning a corner although he believes the recession is still far from over. Now whatever that means, back home in India, the results have been mostly on par or above expectations barring a few cement companies. Disinvestment (the buzzword for the bulls) may see action in mid-August as around 15 PSUs have been asked to give IPO feasibility report. On the flip side, a rise in refund payout has hurt the Centre’s net direct tax collections growth rate for the first quarter this fiscal.
