The Mena-ce continues

Violent means will give violent freedom. That would be a menace to the world and to India herself -Mahatma Gandhi.

Violence and hostilities, some perhaps stray in nature, have been attracting great attention. Global markets in turn have been swinging to the beat of political turmoil in the MENA and its impact on crude oil. Hostilities in Libya have intensified, especially around oil assets. Even Saudi Arabia seems to be witnessing sporadic protests.



As if the geopolitical risk was not enough, we have been hit by a few ‘not-so-encouraging’ global economic data. China has reported the worst trade deficit in 7 years – it’s first in 12 months. Japan’s GDP for Q4 CY10 has been lowered. South Korea has hiked rates again. Spain’s debt rating has been downgraded. US weekly jobless claims have increased while its trade deficit has worsened.

For India though there is some good news in the form of robust exports and a steep drop in food inflation. January IIP will be out today. Expectations are low and we do not rule out a positive surprise in the data.

The Nifty is likely to be rangebound between 5400-5560. A breakout of this band either side will determine the near-term direction. A close below 5490 could reverse the short term uptrend. The broader trading range for the Nifty appears to be between 5300 and 5700.

Watch out for the monthly inflation figures (March 14) and the mid-quarter RBI review (March 17).

Equity shares of Sudar Garments Ltd. and Fineotex Chemicals Ltd. will list today. Shares of Indian Terrain Fashions Ltd. will list today pursuant to a Scheme of Arrangement announced by Celebrity Fashions Ltd.

The IPO of Lovable Lingerie has been subscribed by more than 10 times. The issue closes today. The QIB portion ended on Thursday.

FIIs were net sellers of Rs 971mn in the cash segment on Thursday, according to the provisional NSE data. The domestic institutional investors (DIIs) were net buyers at Rs 1.08bn on the same day. FIIs were net sellers of Rs 5.94bn in the F&O segment.

The foreign funds were net buyers at Rs 2.06bn in the cash segment on Wednesday, as per final SEBI data. Mutual Funds were net buyers of Rs 1.8bn in the cash segment on the same day.