With hardly any effort from the bulls to shore up sentiment, today’s start is likely to be flat to steady. Things could get better later on provided the external situation improves.
The eurozone debt issues coupled with the geo-political tension on the Korean peninsula could cloud the local sentiment. FIIs have taken some money off the table and may remain on the sidelines for a while.
It has been rather volatile of late as far as the Indian market is concerned and the trend might not change much for the remainder of December. While the Indian market has struggled post Diwali, the overseas markets seem to have held on well. Wall Street is currently at a two-year high. Even the European markets have gained this month, notwithstanding the sovereign debt problems. The much-dreaded rate hike from China hasn’t materialised either. Back home, the RBI has taken the much expected pause in rate tightening while announcing measures to ease the cash crunch. Advance tax numbers have raised hope of a strong Q3. Inflation seems to have softened but still remains a threat. The EGoM this week on diesel and LPG prices will be an important event to watch out for.
