Back to narrow range!

The budget evolved from a management tool into an obstacle to management- Anonymous.

The Union Budget is now out of the way and the nation obviously seems to be much happier with Sachin’s long awaited 100th ton and Kohli’s master stroke vs. arch rivals Pakistan than with the Budget per se. The timing of the Union Budget would have given most people ample time to analyse and dig deep into the fine print. The reactions have been mixed – from mildly positive to outright disappointment. But, largely the Budget is likely to be neutral for equities.

The bond market could behave slightly differently, given the skepticism over fiscal deficit estimate and the large borrowing programme. The rupee will be at the mercy of crude oil prices, overseas markets and fund flows.



The start today looks indecisive to say the least. Barring China, most Asian markets are in the green. US stock indices finished flat on Friday while their European counterparts ended higher.

With the Budget gone, the Indian stocks will look towards the RBI now for more clues. But, the next RBI policy meet is on April 17. Till then, the key indices might trade in a range with no clear bias. Then of course the results season will also kick in early next month.

As far as external factors go, crude is the biggest area of concern. Some of the abundant global liquidity should continue to find its way into India.

Indian markets extended losses to a four straight week with the Nifty closing below 5350 levels after a volatile trading session. A close below the weekly doji star reinforces the bearish view on our markets with the immediate support seen at 5160 levels - which corresponds to 200 DMA.

Trend in FII flows: The FIIs were net buyers of Rs 8.83bn in the cash segment on Friday while the domestic institutional investors (DIIs) were net sellers of Rs 7.7bn, as per the provisional figures released by the NSE.

The FIIs were net sellers of Rs 23.32bn in the F&O segment on Thursday, according to the provisional NSE data.

The foreign funds were net buyers of Rs 1.82bn in the cash segment on Thursday, as per SEBI web site.

Global Data Watch today: RBA's Governor Glenn Stevens Speech, Eurozone current account, Eurozone construction output, Fed's William Dudley speech, NAHB Housing Market Index (Mar) and Fed's William Dudley speech.