All major results have been a damp squib. IIP numbers haven't been very encouraging either. The markets were in a sombre mood the whole week but for some cheer that came on Friday as election results came-in. The bellwether index Sensex closed the week 176 points up. Our folks at the studio discuss key events of the week:

Diya: Frustration is building up amongst investors. Just when the situation seemed to be improving, the Q4 performance of corporates arrived on a disturbing note…

Shridhar: Right. HUL, Whirlpool and quite a few of them including cement have reported a sharp drop in profit margins.

Diya: Yes… and I think the pressure on margins will only increase further in the coming months. The Petroleum Ministry is considering another around of hike in prices.

Shridhar: The Empowered Group of Ministers were supposed to meet this week, weren't they?

Diya: Originally yes. But then it got rescheduled for next week, possibly around May 17-18. And this time the oil refiners are not asking for just a price hike but a change in the policy framework itself!!

Shridhar: If it comes through it will be of some respite to the bleeding refiners but what about the aam aadmi? Oh God! Veggie prices will go up again.

Diya: Yup! The common man doesn't have a choice... With inflation rising, interest costs are also going to burn holes in the pocket of the common man. State Bank of India has increased its lending rates by 75 basis points.

Shridhar: So I have to bear with higher EMIs too now…

Diya: Yes and what is worrying is that there are already some signs of a slowdown in demand. Rising interest costs may worsen the situation further. Numbers in the month of April for car makers have also tempered.

Shridhar: IIP numbers have also signalled a similar trend, right?

Diya: IIP for March recorded a growth of 7.3 per cent. Though higher than the previous month's growth, it is sharply lower than the 15.5 per cent growth reported in March last year.

Shridhar: How are the consumer home-appliance makers faring?

Diya: Numbers from IIP are not encouraging them too. However it will do well for investors to wait till the June quarter numbers before taking a call. Delayed start of summer has spoiled air-conditioner and refrigerator sales this time.

Shridhar: The mercury has risen to over 40 degrees Celsius now and stepping out of this studio is like stepping into the sun directly. Maybe these consumer guys will see bumper sales in the current quarter!

Diya: Maybe… The Met Department has predicted a normal monsoon this year and this is the only ray of hope now for everyone.

Shridhar: The Finance Ministry itself is betting only on the monsoon now to get to its target growth in GDP for this year.

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