Suddenly, it gets erratic!

The sudden and swift drop has made the near-term outlook turn slightly bleak. There are more chances of the key indices going down than up. The start today is likely to be down.



Often it takes some calamity to make us live in the present. Then suddenly we wake up and see all the mistakes we have made. - Bill Watterson.

The last half an hour was a calamity of sorts for the bulls. The sudden and swift drop has made the near-term outlook turn slightly bleak. There are more chances of the key indices going down than up. The start today is likely to be down.

US stocks closed nearly unchanged as investors remained hesitant ahead of the FOMC meet next week. European stocks managed moderate gains. Key Asian markets are down.

The F&O rollovers have been lower than average. Though food inflation has dipped the data on six key infrastructure industries doesn’t inspire much confidence. Economic statistics have been erratic of late and will make it tough for the RBI to take a call on rates next week. It might still go ahead and jack up rates by 25 bps.

Lots of big results are lined up today as well. US third quarter GDP data will be out later today. Next week is big on events, including the Fed meet, Coal India listing and the of course President Obama’s visit.

FII inflows had been tapering off and turned negative yesterday. FIIs were net sellers of Rs 9.5bn in the cash segment on Thursday (provisionally), according to the NSE web site. Local funds were net sellers of Rs 604.4mn. In the F&O segment, the foreign funds were net sellers at Rs 5.67bn on Thursday. The foreign funds were net buyers of just Rs 977mn in the cash segment on Wednesday, as per SEBI data. Mutual Funds were net sellers at Rs 3.76bn.

Results Today: ABB, Atlas Copco, BILT, BEL, BHEL, Blue Star, Cinemax, Federal Bank, GHCL, Gillette India, GE Shipping, Hero Honda, HCC, ICICI Bank, IOB, ITC, Jet Airways, Kansai Nerolac, M&M, Moser Baer, Motherson Sumi, Nagarjuna Fertilizers, NFL, Nestle India, Nirma, Puravankara Projects, Radico Khaitan, S Kumars Nationwide, SCI, Shoppers Stop, SJVN, Syndicate Bank, Tata Chemicals, UCO Bank and Welspun Corp.