The market is expected to remain volatile and uncertain in the near term due to several challenges that have cropped up over the past couple of months. A probable stimulus package from the government to revive the economic growth has raised fears of widening of fiscal deficit, which could get stressed further by rising crude oil prices (at a 2-year high) and a weakening Rupee. This is clearly reflected in market sentiments over the last two months. Going forward, while we expect the RBI Monetary Policy to be a non-event with no interest rate cut in wake of inflationary trends firming up and GDP slowdown being transitory; Q2FY18 corporate earnings and global developments (extent of geopolitical risks, cues from US Fed towards interest rates and stimulus unwinding, etc.) are events to watch out for. Amidst all of the above, liquidity will be an important decider for short-term market trends.