Shaken but not stirred!

The market is like an earthquake- unpredictable, a little scary, but when the hard part is over you realize how lucky you truly are.

Thankfully, the threat of a devastating tsunami receded and the Indian market could well look at a day of recovery. A pull-back in global markets may lend support early on but the overall trend for the day will be set by the IIP data. Industrial production is expected to moderate in February from January’s 6.8% expansion. Infrastructure sector output, which accounts for ~38% of IIP, grew by 6.8% in February vs. January's 0.7% growth.

Friday will be another big day with Government scheduled to release inflation data and IT major Infosys declaring its Q4 earnings. WPI-based inflation is likely to have edged lower in March from February’s 6.95% print. Infosys has had tough time in recent quarters meeting market expectations. Its guidance for FY13 will be keenly watched. China’s GDP data, and US economic statistics will drive sentiment globally. Also keep an eye on earnings reports of Google and JP Morgan.

The key concern for India is the persistent selling by FIIs as the Government is yet to fully clarify on the controversial GAAR issue. The undercurrent will remain cautious as investors analyse India Inc.’s latest report card.