Watch your steps!

I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over. - Warren Buffett.

The Sage of Omaha is in India finally and feels he should have come here earlier. Better late than never as the legendary investor says. He has also confirmed that India fits into his scheme of things as a large investment destination.

With the market in a state of flux one ought to try and take smaller bets and stick to quality to avoid getting caught on the wrong foot. We are staring at a lower opening due to indecisive global cues and trepidation over the ongoing turmoil in the MENA. Japan’s nuclear issues and Europe’s debt troubles are among the other major pressure points that one is grappling with as of now.



Markets may be relieved that the Government has taken a baby steps towards pending reforms. The tabling of GST bill and the Banking bill is positive, but not without controversy, as the Opposition staged a walk out. Hopefully the momentum in policy making will gather steam.

A move above 5435 could help the Nifty march towards 5470. The next key levels are 5500 and 5550. But, the big one is undoubtedly the 200-DMA (~5680), which seems to be evasive immediately.

In global market action, markets in the US ended in the red, but only marginally, as oil prices climbed amid persistent concerns over the MENA conflicts.

Across the Atlantic, European stock benchmarks finished lower as investors turned cautious owing partly to worries over the eurozone debt problems.

In Asia this morning, the overall picture is weak. Most indices in the region have lost ground, with Japanese shares once again leading from the front. The Chinese market is more or less flat so is the Hang Seng in Hong Kong.

FIIs were net buyers of Rs 2.36bn in the cash segment on Tuesday, according to the provisional NSE data. The domestic institutional investors (DIIs) were net buyers at Rs 960.4mn on the same day. FIIs were net buyers at Rs 8.12bn in the F&O segment.

The foreign funds were net sellers at Rs 679mn in the cash segment on Monday, as per final SEBI data. Mutual Funds were net sellers at Rs 2.57bn in the cash segment on the same day.

The euro declined for a second day against the dollar on concern European Union leaders meeting this week will struggle to find a permanent solution to the region’s fiscal crisis.

The pound strengthened to $1.64 for the first time since January 2010 and gilts slumped as U.K. inflation accelerated more than economists forecast, renewing speculation that the Bank of England will raise interest rates.

Oil rose to a two-week high in New York amid concern that increased Allied attacks in Libya will prolong supply disruptions and the escalating turmoil in the Middle East may curtail shipments.

Gold rose in New York for the fifth straight session as tensions in the Middle East and Libya boosted demand for an investment haven.

Asian Markets on Wednesday:

Asian markets are mostly down, breaking a sequence of three successive days of advance, as investors fret over the continuing struggle to stabilise the Fukushima nuclear plant.

A series of shutdowns announced by top Japanese companies, coupled with more earthquakes near the damaged nuclear site also made investors a little wary.

Add to that the persistent turbulence in the MENA region, the consequent spike in crude oil prices and the eurozone fiscal worries and one has a tricky situation to tackle.

The MSCI Asia Pacific was down 0.5% at 132.36 as of 10:30 a.m. in Tokyo. About five stocks fell for every three that climbed on the index.

The Asian benchmark Index last week recorded its biggest weekly drop since the height of the European debt crisis last May.

The Nikkei in Tokyo was down ~1.6% at 9,455 while the broader Topix index dropped 0.8% at 861.

The Hang Seng in Hong Kong was down ~0.4% at 22,774 while the Shanghai Composite index in China was up ~0.4% at 2,931.

The Kospi in Seoul shed ~0.3% at 2,008 while the Straits Times in Singapore was up 0.2% at 3,010. The Taiex in Taiwan was down 0.2% at 8,491.

The S&P/ASX 200 index in Australia rose ~0.1% at 4,650. New Zealand's NZX 50 index was flat at 3,366.

A spate of fresh earthquakes rocked Japan’s Fukushima prefecture, where Tokyo Electric Power Co.’s damaged nuclear plant is located. But according to Japan’s Meteorological Agency there was no threat of tsunami waves.

The Japan Nuclear and Industrial Safety Agency said that there has been no impact on the Fukushima plant from the latest aftershocks.

In addition, Japan said that it may set up a reconstruction agency to oversee earthquake repairs.

Chief Cabinet Secretary Yukio Edano told reporters in Tokyo that the government will weigh some sort of system or organization to oversee spending following the earthquake.

Tokyo Electric Power workers began restoring power to the crippled Fukushima nuclear plant even as radiation leaked into the sea and contaminated some food.

Toyota Motor declined after extending production halts. Sony Corp. dropped after the electronics maker suspended some work at five factories.

Virgin Blue Holdings plunged in Sydney after Australia’s second-biggest airline forecast an annual loss.

Honda Motor fell after saying that it will suspend production at three plants in Saitama, Mie and Kumamoto prefectures until at least March 27.

Daihatsu Motor Co., Japan’s biggest minicar maker, declined after extending a production halt until March 24.

US Markets on Tuesday:

US stocks ended slightly lower, snapping a three-day winning streak, after oil prices rose amid continuing concerns over Japan's nuclear issues and the unrest in the Middle-East, North Africa (MENA) region.

The Dow Jones Industrial Average shed 17.90 points, or 0.2%, to end at 12,018.63.

On Monday, the blue-chip average posted its biggest gain since a three-day run that ended Sept. 3, 2010, and finished above 12,000 for the first time since Japan’s March 11 earthquake.

Twenty of the Dow’s 30 components closed down.

The Standard & Poor’s 500 Index dropped 4.61 points, or 0.4%, to close at 1,293.77 Industrials was the worst performing of its 10 industry groups while telecom stocks fared the best.

The Nasdaq Composite Index dropped 8.22 points, or 0.3%, to finish at 2,683.87.

Decliners edged ahead of advancers on the New York Stock Exchange, where volume stood at nearly 824 million shares.

On the New York Mercantile Exchange, oil for April delivery, the expiring front-month contract, closed up 1.6% at $104 a barrel.

Crude futures for May delivery, the most active contract, closed up 1.8% at $104.97 a barrel.

The dollar was slightly higher against the euro, lower versus the British pound, and flat against the Japanese yen.

Gold futures for April delivery rose $1.20 , or 0.1%, to settle at $1,427.60 an ounce.

The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 3.34%.

The Federal Housing Finance Agency's home price index fell 0.3% in January, following a 1% drop the prior month.

News reports revealed that Apple had sued Amazon in California federal court. In the complaint, Apple asked a judge to block Amazon from using the term "Appstore."

Three years ago, Apple was granted a trademark on its own "App Store."

Shares of Apple rose 0.6%, while Amazon's stock fell 1.2%.

Walgreen Co.’s shares tumbled 6.6% after the drugstore chain said its quarterly profit rose 10%, but investors were disappointed by its profit margin.

Netflix Inc. rose 4% after Credit Suisse upgraded the online-video and DVD supplier on the belief that Netflix will expand its services overseas.

Carnival Corp. fell 4.5% after the cruise-line operator projected quarterly earnings below expectations, as rising energy costs dented its profits.

Bristol-Myers Squibb Co.’s shares rose 1.1% after the company announced that its much-awaited melanoma drug improved the length of survival.

European Markets on Tuesday:

European stocks fell, ending a three-day rally, as investors loosened their holdings of shares in engineering, auto and retailer Metro AG amid persistent worries over the MENA and Japanese events.

The Stoxx Europe 600 index slipped 0.2% to end at 271.83.

In France, the CAC 40 index dropped 0.3% to 3,892.71. Germany’s DAX 30 index closed down 0.5% to 6,780.97.

Portugal’s PSI 20 index fell 1.5% after its main opposition party signaled that it won’t support the government’s call for additional austerity measures. A vote on the measures is expected on Wednesday

Portugal is widely seen as one of the euro-zone nations that may eventually need external financial aid in order to meet its obligations.

PSA Peugeot Citroen fell 2.75% after the French automaker said that the Japanese earthquake will partly hit diesel-engine production because of an interruption of output at a supplier.

Other car makers also fell sharply. UK engineering stocks were also weaker while Financial stocks were among the better performers.

Shares of Metro AG dropped 4.7% after the supermarket operator reported a 33% rise in fourth-quarter profit, but also cautioned that unrest in the Mideast and North Africa, the Japanese earthquake and economic problems in parts of Europe could affect its earnings targets.

Other European retailers were mostly lower as well.

Shares of Nestle SA shed 1.1% after the Swiss food group was downgraded to neutral from overweight by J.P. Morgan Cazenove.

Shares of Deutsche Bank AG slipped 0.2% in Frankfurt following news that the bank lost a court case over the way it marketed complex derivatives.