There is no great feeling in the market as we stare at another soft opening. The global markets appear inconclusive. US stock benchmarks posted moderate gains while Europe was subdued. Asian markets are trading mixed. Looks like investors are on a ‘wait-n-watch’ mode and appear to be reluctant in taking major bets immediately. The Nifty is expected to remain stuck in the 5100-5150 range and the next hurdle is near the 5200. Fresh selling could take it as low as 5030-5050.
Inflation numbers showed a spike in fuel price. A possible trigger later in the day would be the IIP numbers.
Meanwhile, India Inc’s global conquest continues unabated – yet another sign of revived confidence following the financial turbulence. The economy is in good shape, if not great. The Government is aiming for the top slot in a few years. This may sound a little ambitious but not unachievable. Much will depend on how the policy landscape unfolds besides of course the state of the world economy. Among the other major headwinds include inflation and its implication on monetary policy.
