Tuesday’s smart turnaround is likely to spill over into today’s session owing to robust global cues. US stocks rallied, spurred by strong earnings from top names such as Ford, UPS and 3M. A strong consumer confidence report added fuel to the fire. European equities too gained after UPS reported encouraging inflows from wealthy clients. Asian stocks are mostly higher, led by Japan.
We expect a positive opening for Indian indices. The focus will continue to be on corporate results. Dabur, Exide, Patni, UB and Wipro are among the leading companies declaring quarterly numbers today.
Volatility will prevail ahead of tomorrow’s F&O expiry. But, the big event to watch out for is the FOMC meeting and Ben Bernanke’s conference. Markets will pay attention to what the Fed chief says about his strategy once the QE2 ends. Meanwhile, the so-called carry trade is picking up amid expectations that the US and Japan will keep rates low. On the other hand, inflation continues to be the biggest problem.
