Weekly Newsletter - July 11 2008

The indices just about managed to end in the green for the week. However, almost all the gains of the week were wiped out on Friday following a confluence of factors. These include Infosys failing to revise its guidance, a rise in inflation and disappointing IIP numbers. Crude, which had crashed during the week initially turned around on Friday to skyrocket to a new high around the US$146 levels.

Global cues may cause some swings at start. Thereafter, the performance of the indices will hinge more on the domestic news flow, especially the corporate results. Given the over reaction in the market on Friday, we see some improvement in the overall indices for the coming week. Another positive close, hopefully better, lays in store.