Japan has been rattled by a natural calamity of monumental proportion. Expectedly, Japanese shares have taken a severe beating despite the BOJ injecting $86bn to stabilize markets. After the double whammy of quake and Tsunami, Japan is now staring at a potential nuclear disaster.
But, other Asian markets have managed to avert a steep fall as did the US markets. Oil prices have softened, with Nymex futures below $100 a barrel. Brent is still hovering around $112.
Meanwhile, the political turmoil in the Middle-East continues amid a call by the Arab League for a no-fly zone over Libya and Yemen.
We expect a nervous start but no major cuts are in the offing. Apart from the offshore cues, markets will focus on the February inflation data. It is likely to slip below 8%. The RBI will meet on March 17. Before that the Fed will take up a review on Tusday.
The market will continue to be rangebound; the key indices are still trading below 200-DMA. Only a breakout above 5650 will bring some semblance of order.
