We really have no choice but to worry about the future as well as the present. We expect calm in the local markets at least at start today, as most participants would have utilized the Republic Day holiday to mull over the latest RBI move. Since the central bank’s action was in line with consensus estimates and there weren’t any nasty surprises, the markets could retrieve some of the lost ground. The F&O expiry today might just lead to some intraday gyrations especially towards the close.
One needs to be a little bit careful amid continuing uncertainty over the near-term prospects for the Indian markets. While interest rates are set to harden further and could pose a challenge for the Indian economy, all eyes are on whether there will be any softening in inflation.
Despite strong global markets, especially in the US, the Nifty has been struggling to surpass 5800. Any recovery could be short-lived unless the Nifty sustains above 5850. Globally, the Dow flirted with 12,000. Wall Street gained after the Fed left rates and its QE2 programme unchanged. European markets advanced as well. Asian markets are not doing a whole lot this morning.
