July 1st and 2nd week very crucial for market.

Market had been range bound for last week. It has either remained flat or has dipped on one day and recovery on the next. Similar movement will continue till budget. After two months of formation of new government policy of government are still not pretty clear. There has been conflicting statement for corners of congress as well as United Progressive Alliance (UPA). Investors appear to be waiting for the new Congress-led (UPA) government's budget, which is scheduled for 8 July 2004.

Along with budget on 8th July we also have 2 more big triggers in first half of the next month. One is the bonus issue of Infosys on 5th July and next are Q1 results starting with Infosys on 10/11 July.

Rupee has weakened by approx 4% in last quarter. This will be reflected in the bottom-line as well as top-line of most tech companies.