Weekly Newsletter - July 25 2009

The budget blues seem to have been washed away thanks to the high tide on the Street. Positive comments from the government, broadly better results from India Inc., showers of blessings in terms of rain and encouraging core sector growth data have matched the mood of global markets moving up. FIIs too seem to be approaching the market positively for now.

Wild swings are expected next week, especially with the F&O expiry coming up. While earnings have brought glee in most cases, some RIL numbers seem to be on the lower side and could add to the volatility. Profit booking at higher levels remains on the cards. Stay tuned to the global cues and tread cautiously, as the current upsurge could meet some resistance sooner or later.

The RBI will announce its quarterly update on monetary policy on July 28th. The markets are divided on whether the central bank will tinker with policy rates or not. Even if it does, the revision is not likely to be a major one. What one needs to listen/read carefully is what the RBI chief has to say on the economy and any possible hints on future course of action, especially with inflation likely to spike towards the end of the year.

Key results to be announced next week: Titan, Areva T&D, Karnataka Bank, Dabur, Century Textiles, Chennai Petro, Cadila, BoB, RCF, EIH, NTPC, Ashok Leyland, BOI, Tata Motors, BPCL, GVK Power, Mundra Port, 3i Infotech, Grasim, Tata Tea, GMDC, REC, Neyveli Lignite, HUL, EKC, Cairn, Hero Honda, Aditya Birla Nuvo, PNB, Lupin, Godrej Ind, IGL, Sun Pharma, GSK Pharma, IVRCL, HPCL, Sesa Goa, Corp Bank, Jindal Steel, NMDC, IOB, RNRL, RPower, HDIL, Power Grid, IRB Infra, Cipla, Tata Steel, Sterlite, SCI, M&M, IOC, Nestle, UCO Bank, SAIL, Tata Chem, Voltas, Rel Infra, Moser Baer, JP Hydro, Tata Power, ABB, Nalco, Hindalco, Indian Hotels, Divis Lab, Videocon Ind, Rel Capital, RCom and GE Shipping.