Today,we expect a soft opening with uncertainty accompanied by volatility in the short term. Some more cooling is not ruled out. While the Indian market enjoyed an extended weekend, the global markets haven’t traveled much ahead. So, be careful of what you buy or trade. Overall, it appears as though the bulls have run out of steam and reasons to keep lifting the market higher.Meanwhile, the fire at IOC depot in Jaipur is still showing no signs of cooling off. This may affect IOC’s bottomline in Q3.
India Inc’s report card is out, and though profits have improved, the real demand-led growth is still elusive. Most of the rebound in earnings is due to lower operating costs and stimulus measures. The road ahead will be tough to ride on for India Inc., as the RBI and the Government unwind the extraordinary stimulus steps.
Globally too, the situation is similar. Earnings growth has returned but largely due to government stimulus. Though authorities, both here and abroad will be cautious in reversing the stimulus, it remains to be seen how corporates, households and markets behave sans the stimulus.
India Inc’s report card is out, and though profits have improved, the real demand-led growth is still elusive. Most of the rebound in earnings is due to lower operating costs and stimulus measures. The road ahead will be tough to ride on for India Inc., as the RBI and the Government unwind the extraordinary stimulus steps.
Globally too, the situation is similar. Earnings growth has returned but largely due to government stimulus. Though authorities, both here and abroad will be cautious in reversing the stimulus, it remains to be seen how corporates, households and markets behave sans the stimulus.
