Today, we expect the market to open strong due to healthy global cues. We have a truncated week with another holiday on Friday. The market is consolidating after the very nice recovery. It has turned choppy lately after the recent pull-back from multi-month highs. We could see a new push higher or some more selloff. Downside will hinge on whether there will be support on dips. The quarterly earnings will be crucial in deciding whether the rally gets another leg up.
There is action ringing on the telecom front in India with the 3G spectrum sale process beginning today. And of course we have a deadline on Wednesday for Bharti Airtel's proposed tie-up with South Africa's MTN Group. The Indian market was spared the usual Monday Blues thanks to the festival of Dussera; and have woken up to an M&A Monday on Wall Street. Barely a week after Dell bid for Perot Systems, we now have Xerox, (earlier often used as a verb for making copies) saying it would buy Affiliated Computer Services Inc. for $6.4bn expanding its services into technology outsourcing and data management. While Xerox shares came tumbling down, Nasdaq moved higher expecting a round of consolidation in the IT space.
There is action ringing on the telecom front in India with the 3G spectrum sale process beginning today. And of course we have a deadline on Wednesday for Bharti Airtel's proposed tie-up with South Africa's MTN Group. The Indian market was spared the usual Monday Blues thanks to the festival of Dussera; and have woken up to an M&A Monday on Wall Street. Barely a week after Dell bid for Perot Systems, we now have Xerox, (earlier often used as a verb for making copies) saying it would buy Affiliated Computer Services Inc. for $6.4bn expanding its services into technology outsourcing and data management. While Xerox shares came tumbling down, Nasdaq moved higher expecting a round of consolidation in the IT space.
Ring out the old rules, bring in the new. That’s what leaders of G20 nations committed during the weekend. US President Obama said, "We brought the global economy back from the brink, we laid the groundwork today for longtime prosperity as well. Still we know there is much further to go." The G20 leaders also reiterated the pledge to maintain status quo on the unprecedented stimulus till there is absolute certainty that the world economy is out of the woods. So, premature withdrawal is out of question. A gradual and orderly exit is more likely.
