Inflation nose dived…..

The great surprise was the fall in the inflation, was below the 21 week level. The inflation was at 8.98% compared to 10.72%, week on week basis but the inflation was at 3.35% a year ago, brought some signs of faster deceleration. As a matter of fact the crude touched 21 month lows at 55 dollars but the Indian government taking time to reduce the local subsidized prices that could even make the inflation lower by 2-3 points lower but the Govt. is tries to meet the fiscal deficit targets and plans to reduce the subsidy burden.

The Indian equities running far behind the Asian peers due to the slow down in our economy and our inherent capacity to rescue from the grave situation is a challenge encouraged the Bears to take a beating on the street.
The markets started adjusting to ground realities as the steep correction from 4400 to 2250 level made a recovery upto 3250 level as a short covering, especially by the weak hands lot got exhausted and the longs if any were also un-winded above 3080 level where the retail investors entered.
There is no doubt that the smart money is entering in the equity market but confined to very selective stocks. The worrisome at this point is the failure of confidence due to the wide spread gloom across the world.
The yesterday laid down conditions were not met either on high side or on the closing basis but left some silver lining while recovering from the lows. The recovery crossed the 2870 level and the actual closing was at 2855 level but the adjusted level placed the Nifty closing was at 2848 level.