Weekly Newsletter - Apr 16 2011

The Indian market continued to consolidate in a truncated trading week. Three 'I's - IIP, Infosys and Inflation all fell short of expectations and soured the mood a little bit. If it wasn't for Wednesday's strong rally, the losses could have been more. The earnings season is underway but results will be well spread out, as companies report annual numbers.



Since FY11 results are reflected in stock prices, the market participants will keenly follow what India Inc.'s head honchos say about the future prospects. Global cues will continue to cast a shadow on the domestic outlook. Crude oil remains a major area of concern.

Hence, the lingering worries over inflation are unlikely to go away in a jiffy. It will take time to subside. The market may remain rangebound and choppy till that happens.

FII inflows too seem to have tapered off. The sentiment could take further knock if the overseas flows remain subdued. The current situation demands caution and selective approach. Avoid getting complacent and take a medium- to long-term view.