Speech done, now results

Leadership is not about making speeches or being liked; leadership is defined by results not attributes." - Peter F. Drucker.

The King’s Speech may have won the Oscar but investors are more keen to know whether the Finance Minister’s speech will deliver on the promises. The Budget Day show by the Sensex and the Nifty was a bit confusing, especially after having surged initially. Hopefully, most participants will get convinced about the FM’s Budget math sooner rather than later. Given the low level of expectations before the mega event, it is no surprise that the FM has managed to surpass expectations.



The start today appears to be a healthy one, partly owing to firm global markets, although Brent crude is still above the $100 mark. As far as the domestic scenario is concerned, the markets could turn rangebound and choppy. There may well be further upside in the short term if external environment is conducive. The situation on FII flows should also turnaround to give a fillip to the sentiment.

For that to materialise, the governance deficit plaguing the UPA II must be erased. Any improvement in the policy impasse will be a bonus for the markets. Inflation will continue to be a key variable. So, any relief on this front will be welcome. In that context, the movement in crude oil becomes really crucial. Keep an eye on external events, particularly the geopolitical picture in the Middle East and North Africa.

Auto and cement companies will be in focus today as they release the monthly volumes. The manufacturing PMI reports will also be out globally while for India the markets may also latch on to the latest trade data.