Weekly Newsletter - Sep 27 2010

So, the bulls continue to party on the bourses even as global indices struggle in the face of uncertain prospects for the economic recovery in a few key regions. The revelry may persist on Dalal Street given the strong FII inflows and lack of bad news on the domestic front. The F&O expiry might just make matters slightly more interesting but on the whole the undertone should remain upbeat. No major local event is due next week, but on the last trading day we will get data on monthly auto sales, exports and manufacturing PMI. A slew of global economic statistics will keep vying for attention throughout the week.



Among the important data points include - revised US Q2 GDP and manufacturing PMIs from across the globe. FIIs have been calling the shots lately. Expect the large caps to remain in the limelight though on odd days there could be action in the non-index counters as well. Don't get carried away and load up on Small- and Mid-Caps. Even in the frontline counters one should tread with caution at this stage. This month will definitely end up as spectacular. The focus then will turn on October, which will be another important month as India Inc. will unveil its latest report card. Global companies will also declare their results next month. How the new month turns out only time will tell. Don't get too worked up. Take each day as it comes and enjoy the weekend.