From agony to ecstasy

Joy is the holy fire that keeps our purpose warm and our intelligence aglow. - Helen Keller.

After a subdued October and a tumultuous November, the bulls have something to cheer about. The Indian market has bounced back and looks like it has enough spirit left in it to go farther. For a change, the daily dose of news on various scams is likely to be buried by the positive global vibes.



So, it’s a no-brainer that India will witness a gap-up opening, with the Nifty poised to pierce 6000. Hopefully, the external scenario will remain bright enough to enable us to finish higher. There is bound to be some resistance as we go along. But, if the global cues remain supportive, there is a chance that the Nifty will gradually keep pushing northwards. It would be premature to talk about a new all-time high for the Indian markets anytime soon.

The global turnaround has been sparked by strong manufacturing PMI reports. US stocks galloped following encouraging reports on private payrolls, auto sales and productivity. Concerns over the eurozone debt crisis also seem to be ebbing following positive comments from the ECB chief. A successful sale of government debt by Portugal also helped lift some of the gloom.

But, crude oil at $86 a barrel is a cause for concern so is the overhang of tension between the two Koreas. Also, the eurozone debt situation may drag on for months before it is settled. December is the best month for Wall Street. So, the performance of the US markets this month will definitely have a bearing on the sentiment across the world equity markets.

The ECB will meet on Thursday for a monetary policy review. It is widely expected to leave interest rates steady and also abandon immediate plans to exit its ultra-easy monetary policy. The monthly US jobs data on Friday will be watched closely.

FIIs were net buyers of Rs 4.91bn in the cash segment on Wednesday while the domestic institutional institutions were net sellers of Rs 1.99bn, according to the NSE Web site. FIIs were net buyers at Rs 16.70bn in the F&O segment on Wednesday. The foreign funds were net buyers of Rs 11.9bn in the cash segment on Tuesday, as per the SEBI data.