No downpour here

That rain is the best which falls steadily on the earth. A sudden and excessive downpour ruins the fields. - Jerome.

A thunderstorm caught Mumbai by surprise and suddenly it seemed like we are in the midst of monsoon. The steady FII flow has abated and there is no downpour as such in terms of events. Key indices managed to recover after a choppy session while the global picture was mixed. US stocks closed nearly flat, pulling back from their session highs after treasury prices slid. European markets rose amid M&A talk



Today’s start is likely to be subdued as Asian markets are flat to negative, with China pacing the decline. South Korea’s central bank has hiked its benchmark interest rate by 25 bps. Lately, there has been some speculation about China increasing rates as well. Mounting concerns over the fiscal health of eurozone nations like Ireland and Portugal have also hurt sentiment.

Global issues will remain at the forefront even as India grapples with high inflation, hardening rates, tight liquidity and slowing industrial output.
The last of the quarterly results have been announced. In the absence of any major domestic catalysts, the market may flounder unless global equities bounce back.

The Nifty managed to recover on Monday from 50 DMA to close above 6100. With the appearance of a thrusting, piercing line pattern on daily candlestick there is a high probability of the rebound continuing for a while. It could extend towards 6171 which is a 10 DMA resistance.

Shares of Gravita India Ltd. will get listed on the bourses today. The issue price was fixed at Rs 125, the upper end of the price band of Rs 120-125 a share. The company raised Rs 450mn through the issue of 36 lakh shares, which was subscribed 42.88 times. The QIB portion was subscribed 6.04 times, non institutional investors portion (HNI) was subscribed by a whopping 182.52 times and retail portion by 37.34 times.

FIIs were net buyers of Rs 3.13bn in the cash segment on Monday (provisionally), according to the NSE web site. Local funds were net buyers of Rs 33.9mn. In the F&O segment, the foreign funds were net sellers at Rs 16.67bn. The foreign funds were net sellers of Rs 6.83bn in the cash segment on Friday, as per the SEBI web site.

Talking of FII flows, global fund flows improved after the Federal Reserve announced the much-awaited QE2 on Nov. 4, says EPFR Global. During the week ending Nov. 10 investors committed over $15 billion to EPFR Global-tracked equity funds, the highest weekly total since late Q2 2008, and another $7.1 billion into Money Market Funds.

Flows into US Equity Funds were strong while Europe Equity Funds posted their seventh straight week of net inflows, says the US-based global tracker of fund flows. Meanwhile, Commodity Sector Funds hit a 26-week high as the prices of gold and other commodities climbed.

Global Equity Funds had their best week since early April and flows into Emerging Market Equity Funds are on the verge of setting an all-time annual inflow record.

The dollar climbed to a six-week high on Monday as rising yields on 10-year US Treasuries helped boost demand for the US currency.

The risk that Portugal will have to turn to the international community for emergency financial assistance is high because of the growing dangers of contagion through financial markets, the country’s finance minister has warned.