Today,a small pull-back is only to be expected after the recent advance. The recent bugbear - the Chinese market could yet again play party pooper. But then China is something we cannot ignore. Despite perpetual optimism, the force may not be with the bulls at the start so to speak, as global markets are not doing well. The Shanghai Composite has sunk by as much as 5%. Other Asian indices too are down 0.5-2%. On Wall Street, the Dow broke its eight-session winning sequence on Friday. As a result, we are likely to toe the global line and open in the red, though there is no need to panic as such. A small pull-back is only to be expected after the recent advance. The Q1 GDP data will be out today and could swing the game either way.
Despite the impending shortfall in farm output, the situation is not alarming as yet. The Finance Minister has reaffirmed that things are not so bad. One only hopes that the Centre manages the food supply situation well. Still, inflation is likely to present a few challenges down the line. If that happens, interest rates should also harden. One should brace for a few hiccups on the road to recovery. One will of course have to grapple with the daily developments across the global markets and economies as well.
