A brighter Monday morning is in store thanks largely to positive world markets. The overall undercurrent remains shaky and fragile. To start with, a big dampener for the domestic economy and the markets is the policy impasse at the Centre. A sticky inflation and a spate of interest rate hikes have only added to the uncertainty. FIIs don’t appear to be too excited to pour in a lot of money into India. Retail participation is negligible. In addition, monsoon seems to have taken a break of sorts after a promising start.
All in all, the environment is not conducive for equities. In fact a private survey of fund managers on the prospects for the Indian markets is pretty glum. The short point it this is not the right time to be taking on risks. On the contrary, one should at shedding a bit of flab. Stick to a selective, stock picking approach to ride out the short-term volatility.
Meanwhile, Greek is in dire straits. While a Greek default is much feared, Prime Minister George Papandreou will face a confidence vote late on Tuesday.
Markets will also keep an eye on the FOMC announcement on Wednesda
All in all, the environment is not conducive for equities. In fact a private survey of fund managers on the prospects for the Indian markets is pretty glum. The short point it this is not the right time to be taking on risks. On the contrary, one should at shedding a bit of flab. Stick to a selective, stock picking approach to ride out the short-term volatility.
Meanwhile, Greek is in dire straits. While a Greek default is much feared, Prime Minister George Papandreou will face a confidence vote late on Tuesday.
Markets will also keep an eye on the FOMC announcement on Wednesda
