Weekly Newsletter - July 31 2011

An eventful week ended on a steady note. RBI’s 50 bps rate hike stunned one and all. The central bank policymakers also maintained a hawkish tone. So, more tightening is likely in the coming months, especially if inflation remains stubborn.  



A raft of results also kept market players busy. Some hit the bull’s eye others missed the target. FII flows have turned choppy and monsoon too is erratic. The US debt issue dominated world markets and will be in focus early next week.
For India all eyes will be on the monsoon session of parliament. The Government has promised to table a spate of key bills. It remains to be seen how many of them are cleared by the parliament. A few companies are yet to come out with their earnings.
Being the first week of the month, Indian markets will also react to auto sales, trade data and PMI reports. Lots of global data points will also be on investors’ radar aside from policy meeting of central banks in Japan, UK, EU and Australia.