The public spat between SEBI and IRDA about who should regulate ULIPs could cast its ugly shadow on the sentiment. Bulls and bears may prefer to adopt a wait and watch policy despite firm global cues. The role of the Government will now take center stage and voices will get louder for a financial sector super regulator. A protracted battle and a war of words may ensue, something the markets don’t need right now.
IIP data (to be issued today) and monthly inflation (to be released on Thursday) will be closely followed in the run up to the RBI policy next week. The IT pack will in the spotlight ahead of tomorrow’s Infosys results.
The NSE Nifty is expected to top 5400 and levels of 5500 are being talked about widely. But, the ride won’t be all that smooth and some bumps are bound to make that task more difficult for the bulls. Some people are uncomfortable about current valuations amid the emergence of a few headwinds and the market could witness a small correction. The medium-to long-term outlook remains upbeat though in the near-term some uncertainty is likely to prevail.
