Another rollercoaster week leaves the Indian market vulnerable to fresh intermediate downtrend after having bounced back from the recent lows. With inflation running beyond the RBI's comfort level and crude oil prices unrelenting, the market will find it really tough to breakout from the current range. FIIs too continue to be fickle to emerging markets like India, as the US and other matured economies start gathering speed. The Government keeps landing in some mess or the other every now and then. Policy making remains in a state of limbo. Investors are lacking conviction as of now.
In this backdrop, we expect the market to remain volatile and range bound. In the immediately short-term, sentiment will be driven by the events in Japan and the Middle-East. Going ahead, key domestic triggers will come from monsoon and next batch of earnings. One must turn choosy and cautious when there is no consensus on the market's direction. Don't expect the market and your portfolio to do a whole lot in the near-term, but start preparing for the medium to long term.
News of the Week
-Food inflation stays low; Fuel inflation spurts
-RIL falls on downbeat outlook on D6 gas output
-RIL, GAIL, Andhra IPPs sign gas swap agreements
-RBI hikes repo rate, reverse repo rate by 25 bps - The central bank hiked the repo rate to 6.75% from 6.50% while the reverse repo rate has been raised to 5.75% from 5.50%.The RBI left the Cash Reserve Ratio (CRR) and the Statutory Liquidity Ratio (SLR) unchanged at 6% and 24%, respectively.
-M&M completes acquisition of stake in SsangYong Motor
-Bharti Airtel eyes Qualcomm's BWA biz
-Jyothy Labs buys 14.9% in Henkel India
-Reliance Infra bags 2400 MW power project at Samalkot
-TPG, Shriram group acquire Vishal Retail operations.
In this backdrop, we expect the market to remain volatile and range bound. In the immediately short-term, sentiment will be driven by the events in Japan and the Middle-East. Going ahead, key domestic triggers will come from monsoon and next batch of earnings. One must turn choosy and cautious when there is no consensus on the market's direction. Don't expect the market and your portfolio to do a whole lot in the near-term, but start preparing for the medium to long term.
News of the Week
-Food inflation stays low; Fuel inflation spurts
-RIL falls on downbeat outlook on D6 gas output
-RIL, GAIL, Andhra IPPs sign gas swap agreements
-RBI hikes repo rate, reverse repo rate by 25 bps - The central bank hiked the repo rate to 6.75% from 6.50% while the reverse repo rate has been raised to 5.75% from 5.50%.The RBI left the Cash Reserve Ratio (CRR) and the Statutory Liquidity Ratio (SLR) unchanged at 6% and 24%, respectively.
-M&M completes acquisition of stake in SsangYong Motor
-Bharti Airtel eyes Qualcomm's BWA biz
-Jyothy Labs buys 14.9% in Henkel India
-Reliance Infra bags 2400 MW power project at Samalkot
-TPG, Shriram group acquire Vishal Retail operations.
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