>Market Perspective (RELIGARE)

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What to expect in March 09.....

#S&P has downgraded the outlook for India in light of rising fiscal deficit (targeted at 5.5% for 2009-10)

#Lowering GDP growth rate, falling farm output and exports have caused medium term concerns regarding the Indian economic prospects.

#But India is targeted to grow at 5.1% in 2009, a rate much higher than most other emerging and developed nations.

#Expectations of further rate cuts by the RBI and the stimulus packages announced by the government to support the Indian economy.

#Inflation at a 15-month low, augurs well in the present scheme of things and provides headroom for additional rate cuts.

#Large cap equity funds to outperform the other MF categories as volatility persists in the uncertain market conditions .

#Banking, Oil & Gas, Metals and IT are attractively valued, presently trading at lower forward PEs. These sectors can be viewed as long term investment avenues. Investors looking for high growth prospects, based on earnings visibility, may take exposure to Banking and construction sectors which have received an EBIDTAupgrade as per the Religare Equity researchview.

To see full report: Market Perspective March'09