Pre Market Commentary ..

Today, the world may be standing, sitting or sleeping but India sure is moving ahead. The Q1 GDP data revealed a resilient Indian economy. On a higher base and in the face of the global downturn, it was a commendable show. Given the trauma and turbulence the world economy has weathered, a GDP growth rate of 6% plus is acceptable. We expect a better opening on local bourses, as there is no China scare to haunt us today. Other Asian markets too are flashing the green light.One also has to note that Monday’s sell-off was led more by the FIIs, and was restricted to the large caps.

The broader market managed to hold its own. Today, the frontline counters may recover. As far as small- and mid-cap stocks are concerned, one should be careful in dealing with them. However, this space could still surprise on the positive side as these stocks had been under-performing the large caps lately.

In short, the outlook for today appears brighter, though overall things remain uncertain. Early gains may not sustain so one should be prepared for volatility at this juncture.