Today, global cues are mixed. Stock benchmarks in the US gained modestly while the ones in Europe closed lower. Asian markets this morning appear to be a bit sluggish. A mildly positive start is in the offing, while the day as a whole might turn out to be choppy again. The key indices will face resistance at higher levels.
Liquidity is acting like steroids for the bulls as of now, keeping the overall mood upbeat. After a while though, the market will need things beyond money to sustain the upswing. The key indices have doubled from the lows of last October. But, growth in corporate profits hasn’t kept pace with the rally. The worst of the global recession and the financial meltdown may well be behind us.
The market has moved much ahead of the earnings and the economy. With a slew of positive news flow, the bulls have managed to comfortably move ahead hand in hand. However, after briefly kissing the 16k mark, the BSE Sensex softened due to some profit booking. Local and overseas funds, however, remained net buyers.
