Weekly Newsletter - July 11 2009

It’s going to rain results not just in India but also in the US and elsewhere in the world. While the tech sector led by Infosys did show some resilience after posting decent numbers, the overall market appears to be in a weak spot. The global cues have been lending no support. FIIs have been dumping stocks though statistically the figures are positive for the week. The concerns regarding monsoon will be expressed for some time to come. There is also fear of some downgrades from rating agencies.

On the brighter side, the IIP numbers have shown improvement and order books continue to increase for many companies.

Oil has come below US$60 and if it remains lower there is a chance that the government may chose to rollback the recent hike in fuel prices.

There is no clear direction as yet. The market has been on a downhill ever since the Union budget was announced. With no popular policies likely soon, recouping those losses will need some FII power for now.