Weekly Newsletter - Aug 21 2009

The big worry was about a bubble in China and the after effects. Dont expect China to undertake some radical steps in its loose monetary policy. Instead, reports suggest smaller measures may be taken to guard credit growth.

Concerns about drought and its adverse fallout on the economic recovery weighed heavily on the sentiment. Despite some smart recovery from lower levels, the BSE Sensex lost 1.2% and NSE Nifty closed lower by 1.1%. Most global markets too ended in the red.

The swings will continue as we move into an even more volatile week. No major triggers besides the F&O expiry, but then that is enough to add to the wild movement.