We expect a steady start today. Japan and South Korea have gained modestly while stock benchmarks in Europe rose marginally. Avoid taking any major call on either side. Use the uncertainty and consolidation to rejig your portfolio.
The uncertainness in recent times does not really offer much of a choice to take a chance. Brazil’s market is shut on account of the Carnival while a few Asian markets are closed for the Lunar New Year. For India and other world markets that are open for trading, there are hardly any reasons to celebrate - at least for the time being.
If anything, worries have got compounded of late. Concerns over China’s monetary tightening, debt troubles in the EU and the jobless economic recovery in the US are among the woes. Back home, while things appear to be getting better for the economy, inflation, at the same time, is threatening to cross double digits soon. Budget is just a few days away and could herald partial and calibrated rollback of the fiscal stimulus. Monsoon will be crucial, as India can hardly afford another bad rainy season.
