Weekly Newsletter - Oct 1 2009

After a fantastic quarter, the markets could well be a little apprehensive about its future course. Liquidity beats fundamentals in the near term and there are no clear signs of a drought in fund flows. Weekly FII purchases are to the tune of over Rs57bn while domestic funds have been net sellers of over Rs8bn.

Global cues of course will continue to have a major influence. With China and Hong Kong markets shut for few more days, the cues from US will be closely watched, especially with results kicking in. No major economic reports are due in the US next week but today’s reports on jobless claims and spending show a mixed picture. Federal Reserve Chairman Ben Bernanke in his testimony has more or less agreed with most of the Obama plan for strengthening regulatory financial system.

Reliance Industries Board will meet on Oct 07, 2009, to consider and approve, the audited financial results for the year ended March 31, 2009 and to consider and recommend / declare dividend on equity shares of the Company. Prism Cement, Shiv-Vani Oil, Chowgule Steamship, Easter Silk, Goa Carbon and Mastek will announce their results next week. Take the needed rest over the weekend. October may see some spurts, but bulls sure could feel dizzy at the top.