Pain continues

Indian markets continues to be in the rut it’s been in for sometime.
The pain is expected to continue for some more time. Crude prices and
inflation may continue to be the dominating factor. Govt is expected to
continue with it’s policy to tighten monetary situation for controlling
inflation and may raise interest rates one more time. This inevitably will
continue to exert it’s attendant effect in growth numbers which we are
likely to see moderating to some extent.

In the global perspective effects of the stimulus package in the US, launched
in the wake of he recession, seems to be wearing off. Another package is hard
to come by. Situation in Europe is not giving any encouragement either.

But for the medium to long term this could be the opportunity to start
accumulating stocks of companies with sound buisinesses and growth
prospects. For, and equally, Indian economy may continue to
demonstrate its resilience.

Happy investing

Basudev