Market Outlook

Global cues are weighing heavy on our markets,

because of which our markets have become volatile

even after better corporate earnings. Especially news

flow like US where yesterday it failed to sustain the

10000 mark even after dollar index making a new low

of 75.08, crude made a new high of the year of $82

on inventory data and even the 10yr yield has been

increasing. Though the long term story stills remains

intact of uptrend because the economic outlook by

the PMEAC (Prime ministers Economic Advisory

council) still project our GDP growth at 6.5% though

the concerns over bad monsoon, increase in inflation

and interest rates still persist. Also hinting of soft

interest rates for the time being but not ruling out the

changes in them before other economies would act.

We need to wait and watch for our next credit policy

which will be out on Oct 27th though the expectations

of rate changes are very minute.

Today the global markets are weak and FII’s have

also been sellers yesterday hence our markets may

also see a weak start and therefore we have a

cautious view for today.