Global momentum very strong; all eyes on earnings

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Global momentum very strong; all eyes on earnings

It has been a good week for the market so far. Today is the most important day of the week with Reliance results and the buyback announcement post market closing, said Udayan Mukherjee, managing editor, CNBC-TV18.

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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 has been a good week for the market so far. Today is the most important day of the week with Reliance results and the buyback announcement post market closing, said Udayan Mukherjee, managing editor, CNBC-TV18.

It is a big earnings day with Wipro , ITC and Axis Bank announcing results during the day. The Nifty is above 5,000 levels and the global momentum is still very strong. There is a lot of excitement in the market as we close the week, which has been very constructive for the stock market, largecaps and a whole host of midcap companies.

Today is the biggest day it can be for earning both largecaps and midcaps, but the underpinning of the strength seems to be the way global markets have been moving. As long as that remains in place, we don't have to worry too much about the near-term trends, something has to give there. One or two earnings disappointments here and there might just about stall the market here, but this is a global liquidity party and we have sucked in quite a bit of money over the last fortnight.

The S&P has done well, given the size of that market to have eased up to 1,315 so easily given that they didn't have very bad 2011 to begin with and then to start off and carry on rallying, putting on 5% in two weeks at the start of the year. That's at the core of what we are and even the euro is seeing a lot of relief. Now, markets are beginning to slowly price in the fact that maybe Greece will not default after all. Therefore the euro dollar which was languishing at 1.26 is now slowly working its way back to 1.3.

Looking at these two key indicators - the euro and the S&P, one gets a sense of confidence that there is a lot of positive sentiment which is swirling around in global markets. That continues to help every market out here including India which has done better than many markets perhaps because of how badly it did last year.

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