Web Exclusive: Will the markets tumble if FDI in retail gets stalled?

Check what Ambareesh Baliga, an independent market expert thinks. He also suggests the counters one can buy in the current market scenario and the strategies for stocks in the retal sector.

Smartinvestor : Markets have been cautiously optimistic about the FDI issue in Parliament and US fiscal issues. What is your sense of the situation and what is your current market approach?

Ambareesh Baliga : Government agreed to voting on FDI after doing their background check as in whether they have required candidates to support and same has been conveyed by Kamal Nath in past two days so in my sense government will sail through this tide and pass FDI.

Ambareesh Baliga : Markets have to ability to go over 6,000 levels on domestic cues and I doubt it will wait for clarity on US fiscal talks as the major roadblock would be cleared. Also GDP data pointed towards growth picking up slowly in coming quarters an so did the PMI data.

Therefore, once FDI is passed which is largely expected than we me see markets surging to new highs and lot of retail participation can be expected from there on.

Smartinvestor : Liquidity has been supporting Indian markets and so far we have witnessed healthy overseas inflows. Do you expect this liquidity injection to continue even if government fails to get a clearance on FDI in the retail sector in Parliament today?



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