|Market This Week
||Last week SEBI announced some reforms for the mutual fund industry. Though a lot of reforms are still needed but this move is positive and would help the MF industry and asset management companies. How much it will benefit the investors is questionable but the move will certainly boost the sentiments of the market. It also gave a nod for eIPOs which will make the IPO application process much transparent and smooth. On the negative front, there has been a lot of corruption news over the coal scam. There has been zero action from the government front on reforms. This makes the market slightly negative too. It would be advisable to wait for a couple of days for the market to react to the CAG report. A lot of LONG covering was also seen last week. Some correction is expected due to this. However, enter into power stocks blindly if recommended for this week. Keeping in mind the long-term horizon, we think liquidity is flowing into the market as the FII statistics have been very positive last quater. Around $2 billion came in last month. Western countries would be driven by low-interest rates and hence more funds would flow into developing economies. Further rate cuts can happen towards the end of year in India as well. So the long-term story looks good.