It's
neither amusing nor interesting. It's a bit shocking. Some call the
RBI's move a big leap of faith while many industries are moaning on
their fate. Dr. D. Subbarao has upped the ante in the battle against
inflation by jacking up rates by an aggressive 50 bps. What’s more, the
central bank doesn’t seem to be lowering its guard either. It is ready
to sacrifice a little bit of growth in the near term to improve
long-term prospects. So, a further 25-50 bps hike is not ruled out.
Let’s hope for some big relief on the inflation front.
We
expect a better start today and hopefully an improved close. The SGX
Nifty futures in Singapore is pointing to a steady opening. Asian
markets are slightly in the red though. US stocks extended losses amid
no sign of a compromise between the Obama regime and the GOP. European
markets finished mixed.
Results
will of course continue to pour in today as well. So, the action could
largely be stock centric. Immediate support for the Nifty is seen at
~5550, below which selling pressure could aggravate and take it to
~5430.
