Today, we expect a soft opening due to weak global cues. US stocks fell last week owing to disappointing economic reports, particularly on the jobs front. The big catalyst in the near term will be the quarterly earnings, both here and overseas. Monday morning blues are back. Just when one thought the monsoon was over, comes the bolt from the blue. Unexpected stormy weather has been wrecking havoc in South and West India. Although the torrential rains have brought some relief from searing heat, the timing is unwarranted. This is not good news in a year when the overall farm output is likely to take a hit and food inflation is already pretty high. It will be interesting to see what stand the Government and the RBI take to tackle spiraling prices.
What most players are looking for is whether the results will justify the market euphoria. We are inclined to believe there would be more positive surprises. Brace for a rollercoaster ride after a six-and-a-month rally.
