Today, Asian markets, though better this morning, are swinging wildly. We expect a choppy opening. However, a positive close for the key indices is something which should not surprise.
A global scare, triggered by a sharp fall in the Chinese market spread like wildfire. Time makes more converts than reason. So, use this opportunity to take position rather than exit. Don’t let the screaming headlines increase your fear. Instead, dare we say you could get a little greedy.
A weak report on consumer confidence in the US raised fresh doubts over the global economic recovery. Even news that Japan is out of recession failed to sooth frayed nerves. A correction was anyways overdue since the rally started in early part of March.
There is a school of thought that believes that despite the drought India is still capable of clocking healthy growth. Big worries remain the inevitable return of high inflation and the ballooning fiscal deficit. Deep pocket funds have the cash and the intent to buy. Immediately sprucing up the main indices is surely not the priority for now.
