Mkts fed by liquidity; stock specific action expected today

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Mkts fed by liquidity; stock specific action expected today

all markets seem to have hit a sort of consolidation phase. After a tearing start to the year, most markets seem to be digesting those gains.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other CNBC-TV18 anchors have to say

It is very quiet day for global markets; all markets seem to have hit a sort of consolidation phase. After a tearing start to the year, most markets seem to be digesting those gains, said CNBC-TV18's managing editor, Udayan Mukherjee.

So, the S&P has fallen into a sideways groove around 1,350 levels over the last many sessions. We have done the same; other global markets around us are also doing pretty much more of that. The action is in specific stocks as seen in Tata Motors , Lanco , State Bank of India . There is a very stock specific action in the market now.

It has been a bit of a no news phase for markets globally. It looks like a flat February and that is how it is panning out so far. We have had a terrific run, it has beaten anybody's expectations and everybody's expectation, so for the market to fall into a bit of a range now is okay.

It is just that globally, we don't know which way this will come out because yesterday the finance minister's meeting in Europe got cancelled. They still don't have an agreement on Greece and one tends to wonder if they are taking so much time and dithering over signing a contract, what luck can we have in them holding on to implementation after the deal is signed?

Maybe Greece is an indication of things to come in terms of adoption of those austerity packages in Europe. For now, the markets are holding on fed by liquidity, but one just tends to fear that later on the year maybe things start to come unstuck a bit, as people realise that these countries are not able to live up to the accord that they are signing now. So, there is a reason to be slightly iffy about Europe, but otherwise market seems to be holding fed by liquidity.

As long as news flow continues in terms of specific stocks, one will see the market quite supported. This is because in the last couple of days we have seen heavy news flow and now the ball might shift to the divestment calendar and what kind of offerings come through from the government.

It is not a whole lot of time, we are almost there, after a couple of weeks we will see pre-election result talk starting to happen followed by the Union Budget. So, we are wading through reasonable news flow period even after earnings get through because there are expectations of many things in the market .

Liquidity continues unabated, so as long as that critical plank is there then you don't tend to fret about markets. Even yesterday we got Rs 1,000 crore of cash market inflows despite generally markets being quite flattish globally. Flows and technicals remain very supportive yet and the market should not correct in the face of such strong flows.

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