Where is the Market going?

Going forward markets will be dependent upon global clues and fund flow as well from FIIs. With Left out of UPA, pace of reforms in India in the next six months will be crucial for markets as well. Any rise in crude or commodities from current levels will also put pressure on markets. Domestically inflation and IIP numbers would be of paramount importance. At current levels most of the negative factors related to slow down in economic growth, high inflation and high interest rate environment seems to be factored in and any fall from here on will be only on back of high crude and commodity prices. On the other hand any positive news on inflation and industrial production front can cause the markets to go up as we have already witnessed a decent amount of correction from the highs in the last couple of months. We recommend benefiting from the expected volatility by buying into fundamentally sound & beaten down stocks at current and lower levels.