Disappointing Week

Despite the 9% FY08 GDP growth and expectations for 8-8.5% GDP growth for the current fiscal year, the week started off on a bad note. Inflation is bad news. And, if it does spiral out of control, the RBI will have no choice but to resort to some tightening measures and may even hike the repo rate. Right now, we have to deal with fuel price hike. Turmoil on the political front is never good for the equity market and the sentiment was poor after the RSP-members of the Left Front decided to pull out from the UPA-Left coordination committee. On Monday, UK-lender Bradford & Bingley revised its rights issue at a 33% discount with a warning that conditions co