>Equity Weekly Watch (ANAGRAM)

Stress Test for the Bulls ahead

Markets consolidated previous week of gains in this holiday shortened week. The ensuing week is the penultimate week before the last phases of general elections and subsequent results. In the US, government will announce Banking stress test results by Thursday, and tell us what we already know that US banking system is in dire straits.

Domestically, many corporate earnings results were announced in the past two weeks, and most have met expectation save for the real estate sector. DLF has announced horrid quarterly results and the sector is going to receive some stick this week.

Markets are showing strong signs of momentum; by the ensuing week many events are scheduled to put the bulls resolve to test.

ECONOMY NEWS
Inflation edged up to a seven-week high of 0.56% for the week to April 18, defying expectations of a drop towards zero, with data once again highlighting the persistent problem of stubbornly high food prices amid rigidities in the farm sector. Overall food price inflation, which includes these items and more, rose to 7.39% for the week to April 18 from 6.85% the week before, but off the 10-year high of 11.63 seen in early January.

To see full report: WEEKLY WATCH