Weekly Newsletter -Feb 27 2010

The event risk is now out of the way and what a pleasant surprise for the market. The key indices rose sharply on Friday after being range bound for most part of the week following positive feelers from the budget. Investors cheered the government’s move to rein in the fiscal deficit as it announced a partial rollback of some of the stimulus measures. Finally, the benchmark Sensex added 1.5% and NSE Nifty added 1.6% over the week.

The coming holiday-shortened week will see investors trying taking a closer look at the budget announcements and assessing whether the targets mentioned are achievable. Auto companies like Maruti have already announced a hike in prices of cars. The monthly numbers of auto and cement companies will be closely watched. The impact of fuel price hike will see some loud protests from many.

Wish you a nice long weekend and a Happy Holi-day!