ICICI Direct: Weekly Equity Pulse

Previous week: Continuing the previous week’s weakness, the Indian equity market fell further in the week ended February 27, 2009. The market saw a sharp gap down opening in the very first day of the holiday shortened week on bleak global cues however, recovered almost all the losses thereafter as government cut excise duty by additional 2% across all the sectors and extended time limit of previously 4% cut beyond March 31.

Week Ahead : From the recent movements it seems that the Indian equity market is trying to resist sharp fall despite significant fall in global markets. The stimulus packages that the government is periodically coming out with have so been far able to provide support to the market sentiment. Last week also it was seen despite many odds. In the coming week too this scenario is likely to continue. The RBI is widely expected to take steps to tackle slowing growth in term of cutting rates supported by falling inflation.

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