The weather may be getting colder but the political scene remains heated in the wake of the 2G spectrum scam. The CBI continues its raid-spree and reports point to some consternation in the Congress-DMK alliance. The winter session of parliament has been a washout. One has to see what fate now awaits the crucial Budget session.
We see another tepid start on the back of mixed global cues. On Wall Street, the S&P 500 index's six-session winning streak came to an end. The dollar and the Treasury yields gained. European markets fell after Moody’s warned of a possible downgrade of Spain. Asian markets are rather listless.
The important event today will be the RBI’s mid-quarter review. The central bank is widely expected to keep policy rates steady as inflation has moderated. But, it could announce steps to ease the tight liquidity. In summary, the market is likely to remain choppy and rangebound.
Stick to a stock centric and guarded approach for the short-term.
