The Sensex and the Nifty lost ground this week on account of disappointments both on the Monetary Policy Review and the Union Budget front. In fact, marketmen were expecting that the RBI would at least hint at rate cuts, but the message that came out was loud and clear that unless inflation came down, there was no scope of rate cuts.
Markets will now look at global cues, although with the Greece problems at least temporarily behind, there are no major cues expected.
Individual shares might react differently depending on whether they are “budget positive”, “budget negative”, or “budget neutral”.
Budget blues are expected to subside by early next week, with a range bound trade emerging.