Advance Tax Numbers – another indifferent event which has failed to impress or disappoint the markets.

Advance Tax numbers so far have given us no major surprise. There is nothing in these numbers to change the mood of the markets. There is a bit of disappointment on the Banking numbers while Auto and other manufacturing numbers have shown a healthy rise. This event is not likely to change the sentiments of the markets on either side. Going ahead we expect markets to remain range bound till the first quarter of the next year sets in. If the growth momentum sustains and the predictions on monsoon are also positive then we can expect the markets to break past this range on the higher side. Currently the markets are appearing a bit expensive on FY 11 earnings. However once we reach the end of the first quarter we can start looking forward to discounting the market on 2012 earnings. This coupled with even reasonable global cues can push the markets to a higher terrain.