Weekly Newsletter - Oct 1 2011

Indian stock indices gained modestly in a fairly choppy week. The 2G scam hit the headlines again. There was some relief in the form of Germany’s lawmakers voting in favour of boosting the eurozone rescue fund. However, markets are still skeptical about Europe’s various plans to prevent Greece from defaulting and contain the credit crisis. The US economy is not exactly pulling away either. Data also showed stagnation in China’s manufacturing output.



Back home, inflation remains a BIG issue for one and all. The Government’s fiscal condition is also not inspiring much confidence. Expectations from earnings are already low. So, one doesn’t really know what impact results will have on markets. Being the start of a new month, the focus will be on manufacturing PMI, auto sales and cement volumes. Offshore newsflow will continue to hold sway over the markets. US jobs report will be another key moniterable.

Overall, the Indian indices are likely to witness sideways consolidation till further clarity emerges on the global front. Encouraging policy action and moderation in global commodities will be a positive for India.