Global cues could shorten party!

Pain is inevitable. Suffering is optional. - MK Casey

Just yesterday, the indices were racing ahead kicking away any concerns that came their way. Today is a different day; after touching 30-month highs, the Indian indices could see some pressure given the global cues this morning.



On the domestic front, Food inflation has come down to stood 10.35% during the week to August 7 as against 11.4% reported in the previous week.

A couple of economic reports released in US brought the bears back with some gusto.

The Dow fell 144 points, the S&P dropped 19 points and the Nasdaq lost 37 points.

Disappointing numbers on weekly jobless claims, slowdown in the manufacturing numbers in the Philadelphia region and the lesser than expected increase in the index of leading economic indicators spooked the Street.

The weakness spread over to the Asian market with the MSCI Asia Pacific falling after gaining five days in a row. The Nikkei 225 is down over a percent, Kospi has shed half a percent.

FIIs were net buyers to the tune of Rs8.21bn worth of equities, while DIIs purchased Rs2.15bn. While domestic funds have been net offloaders in the recent past, Foreign funds have pumped in close to US$12bn into Indian equities this year.

The Cabinet Committee on Economic Affairs (CCEA) which was to meet on Thursday will now meet today at 10 am.

In other news in the media, RIL-NTPC dispute over D6 is heading for truce.

Dr Reddy's in talks with Japanese pharma cos for tie-ups though the Japanese firm has denied the same.

Lanco Infratech has partnered with Indonesian coal mining company Bukit Asam to bid for a 600 megawatt power project.

ONGC may have to pay US$13bn if it were to exercise its pre-emption or right of first refusal to buy Cairn India in the giant Rajasthan block

Huaneng Group may pay GMR Infrastructure US$1.4bn to buy 50% of InterGen

Emami is again on the prowl to acquire FMCG companies in India and abroad. (BL)

Royal Orchid Hotels will raise up to Rs1.5bn to fund its new projects (ET)

Airline stocks could see some action on reports that the government was looking into the proposal of allowing foreign airlines invest in domestic carriers.