Weakness likely to continue: India Infoline

According to India Infoline Daily Market Watch, we expect the weakness to continue on the Indian bourses, although the fall won’t be similar to one witnessed on Friday.

India Infoline Daily Market Watch:

Indian equities fell sharply after the industrial production grew at its slowest pace in more than six years. Rising inflation and disappointing numbers from Infosys dampened sentiments further.

We expect the weakness to continue on the Indian bourses, although the fall won’t be similar to one witnessed on Friday. Crude oil prices are again scaling higher to record levels after slipping to USD 136/bbl mark. On Friday, Dow Jones, slipped below its psychological level of 11,000, suggesting tough times are ahead of us. This week, the performance of key indices is likely to depend on the corporate results. Uncertainty on the results’ front is likely to continue after Infosys failed to revise its USD guidance for FY09 citing continuation of challenging business outlook. We continue to advise caution on the backdrop of slowing growth, rising interest rates and inflation, which are likely to prevail in the near term.

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