Hindalco, Jindal Steel and Tata Steel to be in focus today

Bull market or bear market?

We expect markets to regain its bearing after a sharp fall on Monday.

Stocks likely to be in limelight today?

Metal stocks like Hindalco, Jindal Steel and Tata Steel are likely to hog the limelight. Metal Index fell sharply by 3% and closed at the lowest level for the month.

Sectors likely to impact market today?

Banks are flushed with liquidity as many corporate withdrew money from liquid mutual funds and parked it as short-term deposits with banks. With a revival in the economy along with interest rate stabilisation, we expect earnings of the banks to improve.

Your mid-term view?

Nifty has gained almost 8% this month from recent lows. It is natural to expect some profit booking after such a steep rise. We are of the opinion that recent bug-bears of high crude oil prices and a weak currency are unlikely to rear their ugly head soon. That makes us believe that markets are headed higher after some profit booking.

What drove markets on Tuesday?

The tussle between the US and China affected all Asian stock markets primarily Chinese which fell 2% on Tuesday. Indian markets also fell 1% in line with weak international cues. All the sector-specific indices closed in red and none could withstand the incessant selling. Overall breadth of the markets was quite negative.

VK Sharma, head PCG and capital market, HDFC Securities