Weekly Newsletter - Aug 8 2009

We’ve had a disastrous end to a week which started off at a year’s high. But the outlook doesn’t look all that bad for the coming week. To begin with US jobless rate has declined to 9.4% versus expectations of an increase. Non-farm payrolls also dropped less than anticipated. AIG has raked in a $1.8bn profit, cheering the stock. On the flip side, RBS has slumped following a $1.7bn loss. Worst still, RBS doesn't expect a substantial improvement until 2011.
Back to our market, some buying is sure to set in at lower levels as the "left-out" feeling will prompt many to jump in. During the coming week, the IIP numbers will be released. Since the core sector growth has come in strong, the IIP data too should bring some more cheer. However, the monsoon continues to play truant. Any further negative news on this front could rain some more losses.
Some correction at higher level is something which is a given. The global markets too look less keen on a fresh bounce. Even if they do, it may not last too long. Use the lull to evaluate your portfolio as the medium- to long-term outlook remains positive.