The world seems to be embracing riskier assets, in other words- equities. Even Egypt's investors are said to be gearing for a rally in their market. But India seems to be in a battered club for quite a while. The worst may not be over and investors will hope to forget the Friday fright which saw the main indices tumbling mercilessly.
The markets will try to grapple with advance GDP estimates for FY11 today. Expectations are that the government will project about 8.5% gross domestic product (GDP) growth in the current fiscal. The latest IIP numbers will be out on Friday. The Prime Minister on Friday reiterated what we all know too well- that inflation posed a “serious threat to the growth momentum.”
A flat start is what we have in store for the day. Investors will be wary of taking heavy positions even though many counters seem attractive. Stick to the large caps in case you decide to make some purchase. Meanwhile, RBI’s Deputy Governor Subir Gokarn said Egypt’s crisis will impact the RBI’s actions.
