Weekly Newsletter - Feb 2 2009

It was a winning week but a losing month. Even as the main indices recorded their first green week in 2009, the sentiment remains weak, A number of earlier issues including those of crude prices, inflation and interest rates are more or less under control. But the fear that something could go wrong again is giving bears an edge quite too often. The coming week has no major events except for the ongoing results. But expecting the unexpected is something markets have got used to during the last year or so. Stay guarded and watch the events as they unfold. Heavyweights like Reliance may again lead the market, be it up or down.

Progress on the US government's plan to absorb banks' rotten assets could provide some relief. Global investors are also hoping for some more clarity on the fate of President Obama's massive stimulus package. But, any positive news from Washington could be countered by bad corporate news, especially on job cuts. In this context, next week's data on US unemployment for January will be keenly followed. January sales figures from the US auto industry and retailers could also have a bearing on the global market's direction. Back home, we will get the latest sales figures from auto and cement companies. Companies that announced their results over the weekend will also be in focus.