Banks, Tech lead rally, Nifty ends above 5350
With China slowdown, can JLR hold on to margins?

Money Mar 21, 2012

Concerns over rollback will force Nifty to be rangebound

Traders expect the Nifty to be range bound between 5,170 and 5,340 for the next few sessions on worries that the UPA government may rollback some budget proposals, especially that of railways, due to pressure from its allies.

The expectations of a rollback in railway tariff hikes after Railway Minister Dinesh Trivedi's resignation are growing and underscore the government's political fragility hampering economic reforms.

The expectations of a rollback in railway tariff hikes after Railway Minister Dinesh Trivedi's resignation are growing and underscore the government's political fragility hampering economic reforms.

If political and fiscal concerns were not enough, renewed concerns over China's economic growth are also weighing on the market.

Concerns about the scale of China's economic slowdown resurfaced as BHP Billiton, the world's largest miner, said it was seeing signs of "flattening" iron ore demand from the country.

Reuters

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