Notwithstanding
a fresh round of selling in the western markets, the start here is
likely to be much calmer. Other Asian markets too are showing
commendable resilience. Another positive is that both, FIIs and DIIs
were net buyers on Wednesday. The local institutions have been steadily
buying over the course of the recent correction.
However,
we would continue to urge caution as there is likely to be some
pressure at every rise. Intraday gyrations will remain elevated given
the murky global scenario. So, while you may be tempted to jump in
seeing lower stock prices, don’t get carried away.
Coming
to the offshore backdrop, the relief rally sparked by the Fed’s
assurances proved to be short-lived. World equities resumed their
south-bound journey amid wild rumours that France could be the next to
lose its ‘AAA’ debt rating.
Banks
took the hardest knock, especially the French lenders. President
Sarkozy’s move to cut short his holiday and hold an emergency meeting
also added to the nervousness.
Given the tricky situation prevailing right now, it would be wise to remain vigilant and avoid needless risky bets.
