Weekly Newsletter - July 4 2008

Every week we hope to tell you the worst is over. But half the year has passed by and the market only seems to be weakening. The only spurts (which are unwelcome) include crude oil prices and inflation.

Crude could see some short-term resistance at higher levels. The inflation numbers are moving more or less as expected now. The positive factor could be the results season which kicks off especially towards the end of the week. The grim scenario in recent months has lowered expectations of market participants including the analysts. If corporate India manages to spring some surprise, a lot of negatives will (for the time being) get ignored.

On Friday Infosys will announce its results. Expectations are that the company may slightly raise its guidance. The actual numbers may more or less get discounted. Another expectation is that the software bellwether would do well on the hedging front too. If global cues lend some support, we may well be headed for a positive close.