Weekly Newsletter - Sep 19 2010

The bulls are out of their deep slumber it seems and raring to go. They have already gone quite a lot ahead in pushing the key indices up over the past few sessions. But, there are no indications as yet that point to a halt to the current bull-run. Only a really nasty global surprise can spoil the party here in India because the domestic prospects have not looked so bright in a long, long time. Federal Reserve's meeting next week is going to be a big event in this context. The US central bank is expected to hold rates near record low but it will be interesting to see whether it announces any debt purchase plan.



A spate of US housing data will also be out next week. Trends in the currency and commodity markets will also be watched closely. As far as India is concerned no big economic statistic is due and so the focus will turn to the external events. FII inflows have accelerated of late, along with the recent upsurge in the market, and will continue to drive the sentiment. On the whole, the momentum is likely to last a bit longer but one must not get complacent as the market heads further up. There is bound to be some softening following the sharp advance, a big crash may not be on the cards.