The start today could be flat to tad positive. Most Asian indices are positive. European markets closed mixed on Friday even though the US markets suffered badly.
UPA II completes three tumultuous years in office today. There is unlikely to be much jubilation though given its poor track record in terms of governance. Some would even say it is lucky to be still there in power. There is definitely a crisis of confidence – both politically as well as economically. Surprisingly, the start of the second stint for the Congress-led regime was quite upbeat. Markets were certainly much more optimistic. But, nobody had any inkling that the scenario would reverse so dramatically. The question is: can UPA II leadership at least salvage some pride in the remaining two years?
UPA II completes three tumultuous years in office today. There is unlikely to be much jubilation though given its poor track record in terms of governance. Some would even say it is lucky to be still there in power. There is definitely a crisis of confidence – both politically as well as economically. Surprisingly, the start of the second stint for the Congress-led regime was quite upbeat. Markets were certainly much more optimistic. But, nobody had any inkling that the scenario would reverse so dramatically. The question is: can UPA II leadership at least salvage some pride in the remaining two years?
The start today could be flat to tad positive. Most Asian indices are positive. European markets closed mixed on Friday even though the US markets suffered badly. Markets around the world remain pre-occupied with the eurozone crisis. Things are also slowing down in the US and China. For India, the biggest issue is a fragile rupee, which has been hit by a widening current account deficit and worsening economic fundamentals. UPA II should take a few bold policy actions rather than blame external events.
Indian markets continued their losing streak last week, with the Nifty now down for four straight weeks. Friday's recovery led to the formation of a ‘hammer pattern’ on weekly candlestick charts. The Nifty has been forming lower tops and lower bottom pattern and a move past 4930 levels could result in a relief rally towards 5030. Till then, the outlook remains cautious.
Global investors will be looking for signs of whether the US economy can continue to recover in the face of ongoing uncertainty about Greece and Spain. The European debt crisis will come back to the fore post the Facebook IPO.
Asian stocks have risen and the yen is down after Chinese Premier Wen Jiabao said that the government will focus more on bolstering economic growth. China should continue to implement a proactive fiscal policy and a prudent monetary policy to maintain growth in the world’s second-largest economy, Wen said over the weekend.
German and French leaders are scheduled to meet today in Berlin before a European Union summit on May 23.
Global investors will be looking for signs of whether the US economy can continue to recover in the face of ongoing uncertainty about Greece and Spain. The European debt crisis will come back to the fore post the Facebook IPO.
Asian stocks have risen and the yen is down after Chinese Premier Wen Jiabao said that the government will focus more on bolstering economic growth. China should continue to implement a proactive fiscal policy and a prudent monetary policy to maintain growth in the world’s second-largest economy, Wen said over the weekend.
German and French leaders are scheduled to meet today in Berlin before a European Union summit on May 23.
Key Results Today: Adani Enterprises, Akzo India, Gitanjali Gems, Kalpataru Power, NALCO, Pfizer, Tata Communications, Wyeth and Zee Entertainment.
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