Self
belief and conviction appear to be in short supply – whether it’s the
Government or Indian cricket team. The same also could be said of
investors, some of whom have badly burnt their fingers in the recent
collapse. But, we may see some stability today after the turmoil and
extreme volatility of four straight weeks.
However,
overseas investors still seem to be missing from action. FIIs continue
to be net sellers of Indian equities while their local counterparts have
been doing exactly the opposite. Slowly and steadily they have been
picking up stocks during the course of the recent correction.
Earnings
growth may not be scorching in the coming quarters given the moderation
in the economy, elevated inflation, high borrowing costs and a global
slowdown. But, along with China and a few other EMs, India is still a
better place for investments even as the so-called “western” world is
facing multiple problems.
Some
uncertainties will prevail in the near term though. Be very choosy and
guarded. F&O expiry on Thursday may make the market choppy. For the
day, all eyes will be on provisional manufacturing PMI reports from
China and eurozone besides Germany’s ZEW economic sentiment survey and
US new home sales.
