Be cautious in near term, mkt rally may be shortlived, say pros

On a day when the Sensex and Nifty closed with the biggest single-day gains in absolute term in 7 years, market experts advise caution for the near term citing limited chances of strong corporate earnings over next couple of quarters.Independent market expert, Anand Tandon points out that the Budget, announced on Monday, has led to increased tax burden at almost every stage of product and service purchase. This limits improvement in demand and therefore, in corporate earnings. Experts also believe a lot depends on the monsoon and if it continues to be disappointing then earnings will be hampered. SP Tulsian of sptulsian.com believes that the entire rally on Tuesday cannot be linked to short covering. He believes that the government's focus on the rural sector has given some hope that the sectors catering to this segment might see positive movement. Another market expert, Parag Thakkar believes a sustainable rally can be seen only once global markets recover fully. Ashwani Gujral of ashwanigujral.com expects market to remain sideways over next couple of sessions. Watch video for more...