Some semblance of stability has returned to the global markets though Europe continues to be rattled by concerns that the debt problems of PIIGS group could linger on for a while and might spread to other parts of the region. Meanwhile, ratings agency S&P downgraded Spain's credit rating and said the outlook is negative. Incidentally, the Greek market was one of the few indices to rise in Europe after its regulator banned short selling for two months.
In the US, the Fed left key rates steady and didn’t make any change in its language. The Fed said that the US economy continues to strengthen and the labor market is beginning to improve. The Fed’s rate action and commentary helped Wall Street post a modest advance. Asian markets are mixed but relatively stable. Japanese market is shut today.
We expect a steady start on Indian bourses. After a sharp fall there is always a chance of a rebound. But the F&O expiry and uncertainty over the emerging financial situation in Europe may continue to haunt the bulls. Aggressive buying should be avoided till the near-term turbulence is over. The market will be volatile and we advise you to focus on stock centric action after doing proper due diligence.
