Well as I always write here on a regular basis regarding the fundamentals of Indian Economy and Business outlook is strong and they are expected to be so with FM giving the indications that GDP will grow at 8.5% and inflation to remain below the 5% mark.The temporary glitches might remain with the US markets going into a sort of recession and world markets reacting to the news.It was really interesting to hear Mr.Chidambaram saying that US economy will bounce back at the World Economic Forum at Davos.

Coming back to the stock markets Jan 25 th got registered into the history books (may be temporal) as the markets made the biggest Intra Day gain of 1140 points or 6.21% to settle down at 18,361 points and nifty gained 350 points to settle at 5383 levels.All these happening at the back drop of Fed rate cut and its reaction in the world markets.

Major indices in Asia closed the day in green which boosted the moral of the Indian investors.All most all major sectors were trading higher with gains of 6-10% each.The markets are expected to hang around 17000-18500 in the coming days and we can see a rally coming in during the pre-budget session.The nifty will face resistance around 5500-5600 levels ,once they are crossed it shall be back to the olden days.

Meanwhile SEBI data shows that FIIs have withdrawn some $3.8billion or Rs15,000 crores in the last few sessions which is far more than what they have with drawn in the entire 2007.Thats a matter of concern,but i feel the Indian money coming in the markets are going to fill the gap coming in.Many NRIs were also seen buying stocks at these levels to make huge profit in coming days.

There are some good picks in these tough times too like the Banking sector stocks which include SBI,AXIS Bank,Indian Bank,Bank Of Baroda which feel the least during this period and some like Welspun Gujurat,Bank Of India,Akruti City rose any where between 4-10% range.Even the mutual fund industry is confident that in long term the Indian story is intact and will give a decent returns if the investors hold on with their scripts.

Due to all the turmoil going on the markets the upcoming IPOs are hit badly.The OnMobile Global IPO which was expected to do well has received mild interest.The news coming in says that on day 2 the issue was just subscribed 1.31 times as compared to Future Group IPO which was subscribed 131 times and the QIBs subscribing it by 180 times.The difference is very clear from the above 2 examples.It will be interesting to watch the Indian markets in the coming days and their movements.Lets hope many new records are set and the previous levels are achieved soon.

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