Today, we expect another higher opening. The fact that the market has rallied so much does leave scope for a slight reversal anytime now.The bulls are in high spirits flexing their muscles as equities continue to remain on a roll globally. Hopes of a sustained economic rebound remain notwithstanding the fact that stocks are looking pricey. Inflation is not a near-term concern in the US and other advanced countries. Even in China, inflation remains a distant worry.
However, in India it already is giving some sleepless nights to the RBI and the Government. The coming few months will be a big litmus test for the RBI and the Centre. Hopefully, they will come out with flying colours.Apart from inflation, other worries seem to be ebbing. Recent reports on GDP, industrial output, tax collections and even exports suggest there could be some positive surprises on the economic front.
Liquidity is not an issue for now, as FIIs continue to be upbeat. So, the short story is that the momentum is with the bulls for now.
