Consolidation before the next run
Jun 24, 2010
US Markets closed flat after a volatile session yesterday. New home sales dropped 32.7 percent from a month earlier to 300,000 in May, raising the prospect of an economic recovery slowdown. We expect the economic data to take a toll on the US Markets.
Indian markets are exhibiting excellent strength when compared with its global peers. We see a decoupling sooner but we expect another phase of consolidation. Midcaps along with small caps are looking to run again.
We are bullish on Power and Textiles in the next 2 year period especially power sector is ready to go miles as many plants are in the commisioning phase.
The rupee strengthened on optimism fund inflows would increase as overseas investors step up purchases of the nation’s assets to benefit from India’s economic growth.
We expected the mamouth rally to start in August. But it appears Indian markets might take off a little early. Stay invested and add on downsides.
