Today, we expect a flat to slightly positive start for Indian markets with a likelihood of another short-covering-led bounce. Do not get carried away by any sudden spurt if any as the upside too could get capped sooner than later. In the near term, the Nifty could rise to the 5000 levels again; and perhaps cross 5000 before the Budget. On the whole, the market will remain volatile, largely owing to external factors and concerns over FII outflows. Outcome of the Budget will be another factor to determine near-term direction.
The market remains in a precarious situation. It is time to keep your heart, mind, eyes and ears open before taking a decision. The extended weekend brought mixed news. The industrial output data for December surpassed all optimistic estimates. China surprised by raising the reserve ratio for banks. Data also showed that Eurozone growth came to a halt in the last quarter of 2009. Among the other bad news was of course the blast in Pune just as India and Pakistan get ready to resume bilateral dialogue. On the M&A front, reports suggest that Kuwait-based Zain is said to have accepted a $10.7bn offer from Bharti Airtel for its African assets.
