Weekly Newsletter - Nov 14 2010

The fireworks during the Diwali week had raised hopes of a new all-time highs, but the market had ideas of its own. A spate of fresh global issues prompted investors to shun risk. Corporate earnings were a mixed bag with Bharti, DLF and SBI falling short of target while Tata Motors and Hindalco came out with robust numbers. The IIP report for September too came way below expectations, sparking a broad-based selloff on Friday. Some jittery moments were witnessed towards the end on Thursday too following a sell-off in the Korean market.



The sentiment for the coming week may remain jittery owing to fresh worries over the euro zone fiscal woes and fears of a rate hike in China. The trend in dollar will be watched closely after this week's rally in the greenback. On the whole, global factors will continue to drive sentiment in the near term given the lack of domestic catalysts. Small-Cap and mid-cap counters may continue to outperform. Given the recent cooling, a rebound is always on the cards.