Weekly Newsletter - Aug 1 2009

Global indices including ours have hit calendar year highs. With most of the quarterly numbers out of the way, the market will look for some fresh triggers. The auto numbers to be released over the weekend will given an indication whether or not the pick up in the economy is being sustained.

The FMs announcement of additional stimulus measures and RBIs forecast for GDP growth at 6.5% were among the boosters this week. With no big bang announcements expected, the global cues will continue to influence the market heavily.

For the first time since 1947, the U.S. economy contracted for the fourth quarter in a row, at a much smaller rate than in the past six months. Real gross domestic product fell at a mere 1% annualized rate in Q2 as against an average 5.9% drop over the past two quarters. This news could always be discounted as it was on expected lines.

Back home, some stocks could gain momentum on buzz of inclusion in the F&O. Nothing official about it as yet though. With indices at a high, dizziness at the top could always set it. Take a closer look at your portfolio and make the necessary re-adjustments.