It’s a ‘summer of discontent’ out there for the Indian market. FIIs seem less inclined to resume their shopping spree here, inflation remains elevated and policy making is in the doldrums. In addition, we have had to grapple with a couple of big ‘overseas blows’ in the form of the Japanese calamity and the MENA turmoil.
On the contrary, Wall Street has enjoyed a few really strong months, as the US economy gathers pace (courtesy QE 2). The eurozone remains a matter of concern even as China continues its efforts to slow its economy.
Just when India was starting to catch up with global counterparts, the momentum appears to be on the wane once again. Thankfully, we expect a positive start on account of the greenery around global indices. Remain on the guard as a softening could take place later in the day.
Be very selective in your stock picking and focus on the larger stocks. Keep your expectations a bit tempered lest you be disappointed. The short term prospects are neither rosy, nor are they dire. A rangebound yet choppy chart for the day lies in store.
