The long term outlook continues to remain positive for Indian equities as the economic growth momentum remains healthy with real GDP growth remaining at around 7%. We expect earnings and the earnings growth to translate on positive outlook remaining intact, the near term challenges can influence markets as it gets impacted by events / news flows that can have a near term negative implications.
The data from the US and Europe was not encouraging, however the US central bank commented that it remained on standby and was ready to act in case conditions worsened, rallying markets. We remain in a stop-and-go economy and it is unlikely that world over and in India any strong policy decisions will be taken as it is election time in 42 countries worldwide. We do not see any strong direction in markets in the near term.