After sprinting in recent times, the indices seem to be embracing a range-bound zone. Nature’s fury continues on Japan as a powerful aftershock hit northeast Japan last night. Stocks in Japan and other Asian markets have shrugged off the latest bad news emanating from Japan as there has been no major damage.
Even US indices closed off intraday lows. European benchmarks fell after the ECB hiked rates by 25 bps and Portugal appeared all set to get EU financial aid.
Back home, we expect a cautious start and perhaps another day of consolidation for the Large-Caps. The spotlight will be on small-caps and mid-caps, which you need to think more than twice before placing your bets on them. Volumes have been tepid and could remain so today as well.
Stock specific action will continue. Meanwhile, FII inflows seem to be losing steam. Expect the market to cool off a little more if this trend persists. In other news, food inflation has inched lower. Anna Hazare’s agitation is drawing a lot of attention.
