Awakening of Stock Exchange on back of goodies:

·         Govt. Bold Policy Measures

·         Ex-gratia of Stimulus announce by Federal

·         Expected low interest regime going forward

·         Bear Panicky – Short covering

·         Setting of Bullish under-tone

All these doesn’t means market will not look backward – reasons

1.       Once bear Short Covering is over – collectively they will try to pull back again & with them so called Bull would be accompanying resulting – CORRECTION – to the extent 17500 BSE / 5300 NIFTY is not ruled out going forward before real bullish undertone sets in say by couple of months time frame if other parameter remains constant.

2.       Euro zone crisis handling not on expected lines or slowdown of US recovery – i.e. if sustain +ve wibes are not pouring in, Indian Market can’t march only on its own credential in isolation.

3.       Govt. rolling back policy measures on account of Ally / Opposition pressure.

Our Submissions:

·         Initiate SIP as much as possible as it has proven track record in all adverse scenario with Long Term objective.

·         Wait for correction we have not missed the Bus. Having said that buy with each fall.

·         Short Term Income Fund has and should continue delivering 8.50% Tax Free returns whether interest rate cut is immediate or if postponed to adjust inflationary pressure by increase in diesel prices.