Today is a big day on the global front. Even though the US Federal Reserve meets, there are muted expectations of some kind of Quantitative Easing (QE), says CNBC-TV18s managing editor Udayan Mukherjee. Whether or not the Fed will go ahead and announce any stimulus measures to lift the ailing US economy is what a lot of the global attention will be fixed on today.
Locally well probably know the details of the CCIs (Competition Commission of India) order on cement companies. Watch out for that group of stocks which could be in focus but otherwise the market slipped into a trading range yesterday.
Below is an edited transcript of his interview. Watch the accompanying video for more.
Q: A reaction from markets will happen only tomorrow morning for the Fed but we have bet our tidings today in terms of how markets have performed and some of Mondays skepticism seems to have been put behind them?
A: Yes, the market slipped into a range out here and globally too markets seemed quite stable at this point in time because the second half of June was always going to be global policy focused and thats pretty much what global markets seem to be at, at this point in time. The only observation one would make is that with the S&P at 1,360 you would have expected this to be a phase of slight higher convection but you are not seeing that in the volumes.
So it is an up move that we are still in the midst of in global markets but it seems more like a tentative kind of an up move so far because its not backed by the kind of volume momentum you would expect to see at the end of a 5% plus rally pretty much across global markets. Its not that classic risk on that we are in the midst of at this point even as stock prices have tended to grind higher over the last few days.
Locally we seem to be quite range bound but at the end of the day well probably find some kind of resolution in what the dollar index does from hereon. That I think will hold the key as to whether some