After a five-day rout, investors may feel adventurous this morning as the Indian market could see a much-needed relief rally. World markets, especially in the US, have ignored the political turmoil in Egypt with the Dow breaching 12,000. Other global markets have also been stable to positive amid growing optimism about the ongoing recovery in the US and elsewhere.
Unfortunately, the Indian market hasn’t benefited from the global rally in recent times. On the contrary, India has lost quite a bit of ground, with the key indices dropping below 200-DMA. Inflation has been the biggest bugbear for India, along with policy paralysis. FIIs have latched on to some of these negatives to pull out $1bn in January.
All eyes will be on the forthcoming Union Budget. There have been mere murmurs of a few bold steps being considered for the Budget. If that does happen we might see some semblance of recovery. But, more importantly inflation has to soften and the Government must act on crucial reforms.
Unfortunately, the Indian market hasn’t benefited from the global rally in recent times. On the contrary, India has lost quite a bit of ground, with the key indices dropping below 200-DMA. Inflation has been the biggest bugbear for India, along with policy paralysis. FIIs have latched on to some of these negatives to pull out $1bn in January.
All eyes will be on the forthcoming Union Budget. There have been mere murmurs of a few bold steps being considered for the Budget. If that does happen we might see some semblance of recovery. But, more importantly inflation has to soften and the Government must act on crucial reforms.
FPO shares of Tata Steel will come into the market from today.
