As not much is expected from the European Union summit, it will instill confidence in the market if it manages to deliver. The summit is expected to result in a stimulus package of some 130 billion euros in infrastructure bonds, regional aid funds and European Investment Bank loans.
Amidst low hopes, Nitin Rakesh MD & CEO, Motilal Oswal AMC is a bit optimistic that Indian market may rally 5-7% if EU summit delivers. He feels that that probably there is some level of support coming in from global macro with crude falling like ninepins.
"Despite all the negative news flow, from across the world overnight Monday, we did pretty well yesterday. I think it seems like that the market is refusing to actually fall below 5100-5050 mark. So thats clearly one good sign. Maybe we are seeing valuation support," he adds in an interview to CNBC-TV18.
Rakesh is hoping for a 15% YoY earnings growth in the first quarter of FY13.
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