Today we expect a healthy start on the back of firm global cues. The key indices may run out of steam if global markets fail to sustain Monday’s rise. The broader market resumed its out-performance of large caps and might extend the same. But, be extremely careful of what you are buying. With some improvement in sentiment, the Nifty may once again target 5000 but will face bumps along the way. Fresh selling is not ruled out at higher levels amid mounting external worries.
The health of the Indian economy seems to be getting better by the day if the latest reports on manufacturing and foreign trade are any indication. Hopefully, the wealth will also follow likewise on the bourses. Auto sales remain on the fast track, underscoring a pick-up in consumer confidence. The only drag is a sub-par credit growth and dwindling tax receipts. Hopefully, they will also start improving in the coming months. That will partly hinge on the Government action or lack of it, if any. Budget should make things amply clear as far as the policy roadmap is concerned. Till then, the market may remain sideways and volatile.
