Economists
may not be all that gung-ho about the current state of the Indian
economy, but the Finance Minister thinks the pessimism is overdone.
According to him, all is well with the Indian economy. There is no
policy paralysis and reforms have not been put on the backburner.
But, inflation is unlikely to cool to acceptable levels before March and GDP growth has been scaled down a little.
We
expect the market to be sluggish at start due to indecisive global
cues. US stocks softened amid persistent anxiety over the ongoing debate
over budget talks. But their European counterparts advanced. Asian
indices are clueless.
A move below 5550 on the Nifty could see further selling and the index might head towards 5440.
Meanwhile, reports suggest that the DoT could take a call on fresh allocation of 2G spectrum on Friday.
Separately,
the DoT may also auction airwaves for wireless broadband. The Delhi
High Court would today start hearing on framing of charges in the 2G
scam.
