Today,we expect a cautious opening with no cues from Wall Street and a mixed Asian markets. The bulls may just manage to push indices a little further if FIIs and global markets help. Stocks have doubled in six months. Given the mismatch between valuations and fundamentals, further gains will be difficult to come by. Economic reports and earnings have raised optimism that the worst is over.
There could yet be another crisis if the real issues that need to be tackled are overlooked especially the one relating to global imbalances. Back home, we need to overcome a deficient monsoon, high fiscal deficit, possible spike in inflation and hardening of interest rates.
Troubled minds may have found some calm as strong buying from FIIs helped propel the key indices to a 15-month high. The rally came on higher volume and turnover with positive breadth. Firm global markets got a boost from heightened M&A action. Encouraging remarks from G20 leaders over the weekend added support. We won’t blame you for thinking that a rise was anticipated as Oil India IPO opens. The worry would be how long can it last?
There could yet be another crisis if the real issues that need to be tackled are overlooked especially the one relating to global imbalances. Back home, we need to overcome a deficient monsoon, high fiscal deficit, possible spike in inflation and hardening of interest rates.
Troubled minds may have found some calm as strong buying from FIIs helped propel the key indices to a 15-month high. The rally came on higher volume and turnover with positive breadth. Firm global markets got a boost from heightened M&A action. Encouraging remarks from G20 leaders over the weekend added support. We won’t blame you for thinking that a rise was anticipated as Oil India IPO opens. The worry would be how long can it last?
