Today, we expect a flat start though. Mixed global cues, uncertain external environment and Thursday’s F&O expiry could stop the bulls in their tracks momentarily.Caution has been thrown to the winds for now. Concerns about the six-month rally having been too fast and too furious have been blown away by strong FII inflows. In fact, their net investment into Indian stocks this year has crossed $10bn. Last year, they had pulled out $13bn.
Though the pace of their growth is slow, one shouldn’t be complaining too much when one looks at the situation a year ago. A big question is whether the ascent will continue or will it meet with any sort of resistance.The current bull-run is bound to be tested in the days, weeks and months ahead. Inflation will be the biggest challenge, along with hardening interest rates. Before the bad news starts trickling in, the market may get some good news in the form of another round of encouraging quarterly results.
Though the pace of their growth is slow, one shouldn’t be complaining too much when one looks at the situation a year ago. A big question is whether the ascent will continue or will it meet with any sort of resistance.The current bull-run is bound to be tested in the days, weeks and months ahead. Inflation will be the biggest challenge, along with hardening interest rates. Before the bad news starts trickling in, the market may get some good news in the form of another round of encouraging quarterly results.
