Today, we expect a cautious start after an extended weekend. Things will be volatile given that we have the F&O expiry on Thursday. caution is going to be the mantra for the next few days as the market digests the recent spurt and awaits fresh good news. Global cues are mixed. The outcome of the two-day Fed meeting will be announced on Wednesday (US time of course). It’s a no-brainer that the Fed won’t tinker with rates. What could, however, have a bearing on the sentiment is what the FOMC says about the road ahead and the state of the US economy. Then there is the G20 Summit scheduled for this weekend.
All these events will make it tough for the key indices to build on last week’s gains. Though the overall mood is positive, the road ahead will be bumpy. The fact that we have already traveled so much since early March could bring in apprehensions. The results are just round the corner and expectations are on the positive side. Among the big risks will be inflation and its fallout on monetary policy. FIIs will continue to play a key role.
