Watch out for Tomorrow…Infosys Results may be the cue for Sensex to correct further

Watch out for Tomorrow !

Rains are not falling…but post budget the Sensex is…..From 15100 levels on Monday before Pranab Mukherjee began his budget speech to @ 13750 at closing today

Come tomorrow,Infosys is expected to provide a cautious guidance and a Q1 EPS of under Rs 24.These Results may just be the cue for a further Sensex correction tomorrow

Rains,rather a lack of it, remain a big worry…52 Districts in UP have received just 46% of Rain….A drought situation may emerge in this Big State

90% to 95% of the Long Term Avergage Normal Rains would mean a ‘Less than Normal’ Monsoon….This has been confidently projected already….The Fear is less than 90%…this would mean a Deficient Monsoon

This would have major implications on India’s Economy…lower GDP Growth Rates and more Government Borrowing and a Higher Fiscal Deficit than projected in FY 10

FY 10 remains a very challenging year….and no amount of ‘Disinvestment’ Hype being doled out will really matter in the end as the potential for Corporate Earnings Upgrades begin fading

Sensex will have to reflect this and correct some more    

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