Weekly Newsletter - Mar 19 2011

Another rollercoaster week leaves the Indian market vulnerable to fresh intermediate downtrend after having bounced back from the recent lows. With inflation running beyond the RBI's comfort level and crude oil prices unrelenting, the market will find it really tough to breakout from the current range FIIs too continue to be fickle to emerging markets like India, as the US and other matured economies start gathering speed. The Government keeps landing in some mess or the other every now and then. Policymaking remains in a state of limbo. Investors are lacking conviction as of now.



In this backdrop, we expect the market to remain volatile and rangebound. In the immediately short-term, sentiment will be driven by the events in Japan and the Middle-East. Going ahead, key domestic triggers will come from monsoon and next batch of earnings. One must turn choosy and cautious when there is no consensus on the market's direction. Don't expect the market and your portfolio to do a whole lot in the near-term, but start preparing for the medium to long term.