Weekly Newsletter - Aug 15 2009

A dose of good news can do wonders. Deficit monsoon and H1N1 virus (Swine Flu) took a back seat as the market welcomed upbeat IIP data and the draft of the new Direct Tax Code, especially the scrapping of the STT. On the global front, things are much brighter than they have been for a while now. Data released this week showed that Germany and France have come out of recession. The Fed said that economic activity in the US is leveling out. As expected, the US central bank left key rates unchanged and promised to maintain an accommodating stance till real growth happens. Among the bad news included an unexpected fall in US retail sales in July. The recovery in American labour and housing markets is something we can’t be too sure about. Economic reports from China were pretty mixed. There are still some concerns about asset bubbles in this part of the world.

The coming week may see the market move sideways in a narrow range with a positive bias. No major events or announcements are scheduled, barring regular updates on the Swine Flu headcount and monsoon. A slew of housing reports are expected in the US. But then, in a fast-paced world, many things occur suddenly and the market has no freedom from this. Keep a close watch on your personal holding(s) and try to get independence from the daily worries that haunt the market. Happy Independence Day!