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27 Jun 2011 12:00 AM
Market Commentary – June 25, 2011 
Swapnil Suvarna
 

The markets which began the week on a negative note, bounced back later during the week, with Sensex and Nifty settling higher from last week’s close. Swapnil Suvarna feels the market will continue its bear run during this week and recommends your investors to invest in SIPs of quality equity schemes and short term debt funds

The week started off on a negative note, but the market bounced back towards the end of the week ending on a positive note. The week ended with the Sensex and the Nifty settling at 18,241 and 5471, up 370 and 105 points respectively from last week’s close.

Reports about the resumption of tax treaty talks between India and Mauritius are resulted in a huge sell off early in the week. However, the domestic market gained some momentum following weakness in global oil prices. Also, as news about Greece securing approval of the European Union, IMF and European Central Bank on its plans for additional austerity measures to receive additional financial aid came in, the markets shrugged off the rise in weekly food inflation.

The week ahead

The government’s decision to raise fuel price to reduce the subsidy pressure and fears of the spread of debt crisis in the Euro zone may pull the market sideways next week.  Overall, we expect the market to remain subdued with some moments of sharp volatility due to F&O expiry on Thursday 30 June 2011.

Our advice to advisors remains the same: Your investor must continue investing through SIP in quality equity schemes. Those looking for a more short term investment would do well to consider investing in short term debt funds to capture the benefits of the recent rate hike.

 
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