Today,we could end a topsy-turvy week on a subdued note. Another flat start is in the offing as global cues are indecisive. Asian markets are mixed. US stocks closed in the red despite an improved outlook from Wal-Mart. European stocks held their own though, thanks to fresh M&A action.
How life will be without the stimulus and sea of liquidity is what could cause some discomfort among the bulls. The RBI has already kicked off the gradual process of ‘exit’ from the accommodative policy. With the latest IIP data turning out to be quite upbeat, the fiscal stimulus could also be withdrawn slowly. The unwinding of carry trade will be another big challenge.
The Indian market has been struggling with no clear directional bias after hitting the year’s high in the middle of October. Investors are locking in some gains even as they await confirmation that the economic recovery will translate into better profits. India Inc.’s earnings didn’t inspire the expected confidence, with only a few pockets emerging outperformers. Others managed to boost bottomlines owing largely to lower operating costs.
How life will be without the stimulus and sea of liquidity is what could cause some discomfort among the bulls. The RBI has already kicked off the gradual process of ‘exit’ from the accommodative policy. With the latest IIP data turning out to be quite upbeat, the fiscal stimulus could also be withdrawn slowly. The unwinding of carry trade will be another big challenge.
The Indian market has been struggling with no clear directional bias after hitting the year’s high in the middle of October. Investors are locking in some gains even as they await confirmation that the economic recovery will translate into better profits. India Inc.’s earnings didn’t inspire the expected confidence, with only a few pockets emerging outperformers. Others managed to boost bottomlines owing largely to lower operating costs.
