Weekly Newsletter - Dec 21 2008

The bulls will hope to Jingle all the way in this Christmas-shortened week. We wonder! US President George Bush’s bailout plan (or may be an orderly bankruptcy) for the auto majors is expected to bring some Joy to the World. Having said that, the euphoria may prove to be short lived and the markets could turn lower again on concerns about a weakening global economic outlook. In the Indian market, we have the F&O expiry which could well show gains for the month. The Government may drop more hints on its next round of stimulus package, which is also likely to include more rate reductions. One must keep an eye on global markets as well as FII inflows to make some sense of what the mood on the markets will be in the near term. Like every year, despite disappointments, expectations continue for a miracle on Dhirubai Ambani’s birthday which falls next Sunday (Dec 28). With year-end considerations also in play, expect wild swings before we leave behind 2008 – a year best forgotten