Coping with the problems

Globally, Ireland appears to be drifting towards an imminent bailout, helping the euro recover against the dollar from a six-week low.

If a problem has no solution, it may not be a problem, but a fact - not to be solved, but to be coped with over time.- Shimon Peres.

A higher opening and volatile intra-day gyrations is likely to be repeated at the bourses. The bulls have enough problems to cope with. The telecom scam is hogging the headlines and now the otherwise clean image of the PM has taken a beating. Whether the 2G imbroglio (along with the other scams) will have wider political ramifications for the UPA or not remains to be seen.



Stocks like RCOM, Unitech, Videocon Inds and Shyam Tele could come under pressure. SKS is another stock that will remain in the spotlight and so would banks having exposure to MFIs. Triveni Engineering will announce its results today.

The Nifty has taken support at 5980.A move past 6020 is likely to extend the pullback towards 6170 in the near term.

Globally, Ireland appears to be drifting towards an imminent bailout, helping the euro recover against the dollar from a six-week low. Fed chief Ben Bernanke has joined the war of words against China’s currency policy while defending his QE2 gambit. The Nikkei in Tokyo is trading near a five-month high.

Other Asian markets are mostly in the red though not significantly down. Stock indices in the US, Europe and Latin America rallied overnight amid growing indications that Ireland will eventually take the EU-IMF rescue to prop up its ailing banks.

Portugal could be the next in line for a bailout as the eurozone debt troubles mount. So, the European debt-cum-fiscal worries may resurface every now and then. Currency movements should be closely tracked for cues on global developments. Meanwhile, the OECD has pruned its GDP growth forecast for the advanced economies and has warned of the worsening global imbalances.

FIIs were net sellers of Rs. 4.52bn in the cash segment on Thursday (provisionally), according to the NSE web site. Local funds were net buyers of Rs. 1.18bn. In the F&O segment, the foreign funds were net sellers at Rs. 15.57bn. The foreign funds were net sellers of Rs. 168mn in the cash segment on Tuesday, as per the SEBI web site.