Weekly Newsletter - Apr 17 2009

Bulls may continue to be on a roll next week, as risk appetite is on the rise amid some tentative signs of recovery in the global economy, particularly in the US. Confidence in the western financial system is improving following positive results from the likes of Wells Fargo, Goldman Sachs and JP Morgan. Economic reports too do not appear to be as grim as a few months back, though a sustained rebound may still be some way away. Outflows by global funds have turned into relatively strong inflows, including in emerging markets like India. All these positives have raised optimism that the world economy and financial markets may be turning a corner.

Things are likely to remain positive in the short term, if global cues are supportive. Further rate cuts by the RBI may add fuel to the fire while a status quo too might not do any major damage to the sentiment either. In the meantime, polling for the next Lok Sabha will continue amid bitter war of words among the leading parties. A clear trend on who will form the next government at the Centre will emerge only after May 13. The results will be announced on May 16. In short, the undertone may continue to be positive. And, it will take a really bad development to put the bulls on the backfoot again. Still, one should not get too carried away and lock in some gains.

Key results next week are: Sesa Goa, Axis Bank, TCS, Hero Honda, Ultratech Cement, Hindustan Zinc, ACC, Ambuja Cements, HCL Tech, Marico, Zee Entertainment, Yes Bank, Wipro Idea, Bajaj Hindusthan, Reliance Infra, HDFC Bank, LIC Housing Finance, Reliance Power, Reliance Industries, HCL Infosystems, RNRL, Reliance Petroleum, Bharat Electronics, Cipla, Ranbaxy, Maruti Suzuki India, Piramal Healthcare, HCC, BILT and Wockhardt.