Hungry, but no appetite!

You know my appetite is infinite and greed is more: FM Pranab Mukherjee

The Finance Minister's appetite is not for the stock market; his greed lies in looking beyond the set target for income tax collections this fiscal. Phase out of tax exemptions and widening of the tax base are on the agenda. The 3G revenues and likely stake sale in government companies could well help the government contain the fiscal deficit.




Hunger pangs continue on the Street to lap up quality stocks but risk appetite seems to be waning given the huge volatility. Confused players trying different options including derivatives could find themselves in a dock if they resort to random strategies.

The opening is set to be muted with the Nifty hanging around the psychological 5000 mark where it closed on Wednesday. The critical level to watch out for would be the 4950 zone below which some pressure could set it.

US indices, which were up 1% in early trade, ran out of energy and ended in the red following concerns about BP’s battle with the oil spill. BP’s stock crashed over 15%. The Dow dropped 41 points after briefly crossing the 10,000 mark this week. The Nasdaq shed 12 points.

Earlier Ben Bernanke's comments that actions taken by European leaders represent a firm commitment to resolve the prevailing stresses and restore market confidence and stability was cheered by investors. Testifying before the House Budget Committee he said if markets continue to stabilize, then the effects of the crisis on economic growth in the United States seem likely to be modest.

The Federal Reserve's "Beige Book," a reading on activity in the nation's 12 economic districts, showed that economic activity continued to improve in May, though many districts reported only modest growth.

The euro stabilized against the dollar, which was down 0.2% against the euro. U.S. light crude oil for July delivery climbed $2.39, or 3.3%, to close at $74.38 a barrel.

Gold for August delivery slipped $15.50, to close at $1,228.50 an ounce. In Mumbai, the yellow metal fell to Rs19,068 per 10 gm on Wednesday, down 0.9%.

Asian stocks are higher following a rise in oil and metals prices, which added some weight to commodity stocks.

Japan’s economy grew at a 5% annualized rate in the first quarter, compared with the 4.9 percent reported last month.

China's exports jumped an unadjusted 48.5% in May from the same month a year earlier, while monthly imports surged 48.3%, according to figures just released.