Market Quote - Gaurav Jain - Director, Hem Securities

"Apart from on-going corporate earning, markets will start factoring the sharp rise in crude prices and weak Indian Rupee and its impact on the economy. Brent crude moved near $74per barrel mark last week. Any sharp rise in crude oil prices raises India's import bill as the country imports majority of its crude requirements. This also hits the currency as a weak Indian Rupee raises the cost of importing crude oil. Last week, the Indian rupee hit a 13-month low of 66.10 against the US dollar, after the minutes of the monetary policy panel meeting suggested that they were likely to take a more hawkish tone starting as early as June.

Another crucial event coming up next month is the crucial Karnataka assembly elections, any change in political equations will affect market sentiments as Chhattisgarh, Rajasthan and Madhya Pradesh go for election thereafter. However, even if earnings for the March quarter improve and the market rallies, volatility will return with various state election results and the monsoons are other key drivers".

Source : Equity Bulls

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