All eyes on RBI Policy
While the current momentum is driven by rush of funds from across the globe, there is an increasing voice on valuation theory.Foreign direct investment (FDI) into India dipped for the second consecutive month, by 49 per cent to $ 1.78 billion in July and FII Inflows in August too indicate a slow down.
Timing the correction is the toughest part and lets examine the probable events that might well trigger the correction. We expect RBI's policy meet on 16th September as the biggest trigger for correction in the extreme short term. The other possible event we can think of is European crisis which is showing legs in the last one week.
For today we expect markets to trade in a range with a positive bias with small stocks extending their run