The UPA II regime has really not lived up to expectations so far. The government has its task cut out on multiple battle fronts - be it inflation, corruption or foreign policy. Policy making is in a limbo and India Inc. is not amused, nor is the market. So, it remains to be seen if Manmohan Singh & Co. can still resurrect the situation.
For the day, the prospects on the bourses are not looking bright following a big fall on Wall Street on Friday. The Dow finished below 12,000 for the first time in three months. Some pessimism has crept in with regard to the US economy. QE2 will end this month and the road ahead is uncertain.
Europe too continues to struggle in resolving the sovereign debt problems. China has seen some slowdown while Japan is yet to emerge from the March disaster.
Given this backdrop and lack of participation, it would be prudent to stay quiet for a while. Wait for a clear breakout signal and stick to a selective approach.
