The rally which started in the beginning of the year has paused due to lack of positive trigger from the monetary policy. Although the core inflation continues to come down, Rbi has decided against the rate cut as of now. We expect RBI to initiate the first rate cut in its April policy and we expect a 75- 100 bps rate cut for the entire year.
The Budget, as usual, turned out to be a non-event for the market. Going forward the market will look forward to global cues and Q4FY12 results season for direction. We continue to maintain our positive view on Indian equity on the back monetary easing, global flows and a bounce back in GDP growth.
There are enough beaten down stocks in the midcap space which have the
potential to deliver returns superior to broader markets.
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