Market Outlook - Viral Joshi

Due to a banking selloff Dow Jones fell. A recovery is expected from 12,000 level which should take it toward 13,000. Our market is going to open gap-down, due to negative global effects. However, it will bounce back from the bottom. Expect a big rally in realty, as RBI did not do a CRR hike, instead opting for an internal adjustment of repo rate hike of 25 basis points or 0.25 percent.

The repo rate hike would checkmate rupee depreciation, which means a weaker US dollar, which is good for oil companies although bad for IT. This will be good for markets, because FII money will have more value. The government is being cautious in increasing repo rate before bad inflation numbers, to escape the ire of the communist party and the common man. IIP data also released today.