Take some rest

Sometimes the cure for restlessness is rest. – C Wainwright.

Stellar results by banking major SBI helped counter the bad news on the economic front (IIP fell and food inflation spiked). One good thing is that trading volume has picked up in the past 2-3 sessions. Also, the India story still appears attractive with no let-up in FII inflows, though domestic funds continue to be circumspect. One should also take note of the spectacular debut of India’s MakeMyTrip on the Nasdaq. This only reinforces a view that quality Indian paper is still in high demand.



Today’s start will be tepid at best as global markets are still fragile amid lingering fears of the economic recovery having lost some steam. US stocks fell overnight owing to Cisco’s cautious outlook and an unexpected rise in weekly jobless claims. European markets managed to do slightly better. Asian markets are mixed, with Japan down and China choppy.

The broad range for the Nifty remains 5300-5600. But lately, it has been stuck between 5350 and 5500. It may take a while for it to break out of this range. So, take some rest, relax over the weekend. Happy Independence Day in advance.

Delivery volume in recent show stoppers have been falling, many stocks are hitting all-time highs even as the main indices are in consolidation mode. Also, small- and mid-cap shares have been hogging the limelight for quite some time. Given this backdrop, one should stay alert as the market is unlikely to move decisively in either direction in the near term.

There is no denying that the long-term outlook for India is upbeat, but the market may find it tough to head higher without any stop given the uncertain global situation.

Results Today: Adani, Cipla, Deccan Chronicle, Patel Engineering, Pipavav, RCOM, Suzlon, Tanla and Wockhardt.

FIIs were net buyers of Rs2.18bn in the cash segment on Thursday (provisionally), according to the NSE web site. Local funds were net sellers of Rs6.56bn. In the F&O segment, they were net buyers at Rs8.12bn. Foreign funds were net buyers of Rs1.92bn in the cash segment on Wednesday, according to SEBI's web site.