Weekly Market Newsletter - Dec 23 2012

What the RBI did was more or less in line with market expectations. Although a section of the markets and India Inc. wanted a CRR cut, lack of announcement on the same wasn’t a surprise for sure. The RBI hinted at a shift in stance towards pro-growth measures Indian markets declined for the second week running, as investors digested news flow from India and its global peers, even as they wait for the Government to introduce important reforms. The market appears to be in a sort of uncertainty with some kind of year-end fatigue. Christmas is round the corner but no signs of a Santa Claus rally here. Nifty has been stuck in a trading band of 5,800-5,960 for last two weeks so a breakout either side is anxiously awaited to determine the near term direction. Global cues also were not supportive as fiscal cliff issues continue to overshadow any other economic news. In the coming curtailed week, volatility is likely to escalate due to F&O expiry.