Eyes on RBI

The biggest problem in the world could have been solved when it was small. ~Witter Bynner.

Problems may be aplenty but thankfully world markets appear to have decoupled from what’s happening in the US. Over the past few trading sessions, we have seen non-US markets displaying commendable resilience in the face of the ongoing drama surrounding the debt deal. We may see continuation of that trend today as well.



The start is likely to be a positive one, as Asian markets are all in the green zone. European equities closed mixed with French stocks the worst hit among the top three markets. The Italian and Spanish markets were the worst performers in Europe.

American President Barack Obama a little while ago said Congress is at a stalemate over raising the federal debt ceiling, and Americans need to pressure their elected representatives to work out a compromise that will avoid a potentially devastating default. The overall trend in the Indian market will be driven by the RBI action or perhaps lack of it. The market will be all ears to hints from the central bank Governor on the future course of action.

BHEL, Cairn India, Glenmark, JSW Steel, Maruti and SKS Microfinance are among the notable companies unveiling their earnings today.

Another good tiding is decent buying support from institutions. But, the constant news flow on the 2G scam is definitely not doing any good to the sentiment especially with the former telecom minister dragging the names of the prime minister and former finance minister.

The Nifty closed above 5654 levels. It is placed near a very important level of 5718 (200 DMA) besides weekly falling resistance line. A close above the same could confirm a breakout on long-term charts.

FIIs were net buyers of Rs 3.15bn in the cash segment on Monday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net buyers at Rs 2.24bn on the same day. FIIs were net buyers of Rs 3.46bn (provisional) in the F&O segment.

The foreign funds were net buyers of Rs 5.24bn in the cash segment on Friday, according to the final SEBI data. Mutual Funds were net buyers of Rs 3.06bn on the same day.

Other Results Today: Alembic, Alstom Projects, Asian Paints, Great Offshore, MRPL, Merck, Opto Circuits, Pidilite Industries, Shoppers' Stop, Shriram Transport, Taj GVK Hotels, TTML, Thomas Cook, Venus Remedies, Visa Steel and WWIL.

Global Data Watch: US housing market data and consumer confidence.