Today, we expect the market to open on a cautious note and turn sideways later. Stay guarded and resist the temptation of jumping the gun at least till the Budget. Be selective and do your homework before picking a stock. Given the outlook on India, and the recent rally, there appears little scope for further upside. To justify current valuations and keep the bulls interested India Inc. needs to come out with a strong report card.
Who let the bears out? That may perhaps be the question uppermost on most players’ minds. The sell-off struck suddenly and came on higher volume. Even the breadth was bad. May be the market feels the Budget may be a non-event. A few economic reports globally served as a grim reminder that not all is hunky dory after all.
FIIs are likely to be the jokers in the pack. Of late, this breed seems to have turned cautious. The flood of QIP issues may have prompted some of these funds to take profits. Interestingly, local and overseas funds were net buyers on Tuesday.
