Today, we expect a flat to slightly positive start. Overall, things will be volatile with a possibility of a higher finish if the RBI doesn't spring a nasty surprise and there is no fresh external shock.
Quarterly numbers, global events and of course the RBI’s annual policy will keep the Indian market on tenterhooks. Can the market find some peace of mind? The spotlight will be on banks as the RBI is all set to raise rates (and perhaps even CRR) to tame inflation. The central bank’s commentary will have a bearing on sentiment. But, the fact that the markets have already discounted rate hikes and the key indices have come off the two-year highs could lead to a bounce back.
The Goldman Sachs shock appears to have eased a bit for the time being. The focus will be on the Wall Street titan’s results later today. Citigroup shares rallied after posting strong earnings. But IBM shares are down despite stellar set of numbers.
The IT space will be in focus back home after TCS came out with better-than-expected Q4 results. Liquidity is a key variable and one needs to keep a close watch on fund flows.
