Today, we expect the market to extend Monday’s rally, spurred by firm Asian markets. If the bulls manage to hold their sway there could be a bear squeeze. Liquidity is not an issue but valuation is. Though the undertone appears to be upbeat be careful of what you are buying.There is no stopping the Gold bulls, with the precious metal touching a new record high. The flip side is that the yellow metal is slipping out of the grasp of common man in India. The other concern gaining currency is with regard to asset price inflation. Ironically, gold is seen as a hedge against inflation. That reminds us that crude oil is hovering around $75 a barrel.
Inflation back home is likely to spike further and might just force the RBI to hike rates earlier than anticipated. Results will have a say in near-term direction. But, the overall trend will continue to be driven by global cues. Stocks in the US and Europe struggled overnight.
Inflation back home is likely to spike further and might just force the RBI to hike rates earlier than anticipated. Results will have a say in near-term direction. But, the overall trend will continue to be driven by global cues. Stocks in the US and Europe struggled overnight.
