Well, the Indian market hasn’t made any progress whatsoever in the two weeks of 2011. On the contrary, it has lost quite a bit of ground, with back-to-back weeks of heavy losses. A spate of headwinds has taken a big toll on sentiment and the same is reflected in FII outflows.
Inflation is by far the biggest bugbear. The Government and the RBI are under pressure to take decisive steps to conquer the menace. The petrol price hike obviously doesn’t help. The fact that diesel and LPG prices have been left untouched is even worse.
Reports say an emergency EGoM on fuel prices is scheduled this week but don’t bet on it till it actually materialises.
Today’s start could be higher but going by the trend of the past fortnight one can’t be sure if the turbulence is over. Avoid getting trapped in any relief rallies and wait for some more stability before taking a fresh plunge.
