>Indian Ecnomy,Financial Markets and Products (BIRLA SUN LIFE COMPANY)

EQUITY MARKETS
■ Equity markets is in a consolidation phase
■ Corrective downward movements may be availed of as opportunities to enter the market
■ Corporate earnings more or less on expected lines
■ Investments may be predominantly into fairly diversified large cap funds and midcaps to a certain extend
■ Themes that may be looked at include infrastructure, power, PSU disinvestments, health care, banking etc

GLOBAL INDICES
■ The global markets have also not done well
■ Negative cues from global markets have been a drag on the Indian markets

DOLLAR-RUPEE
■ Rupee likely to move towards Rs 45-46 against the dollar by financial year end.
■ Rupee supported by FII inflows
■ The correlation between equity market performance, FII inflows and strength of the rupee are clearly identifiable in the chart
■ The Dollar continues to remain under pressure after the US Federal Reserve reiterated its commitment to keep interest rates low for an extended period indicating that the US economy
would have a slower than expected recovery.

To read the full report: MARKET STRATEGY