Fear of danger!

Let the fear of danger be a spur to prevent it; he that fears not, gives advantage to the danger. - Francis Quarles.

Indian markets are down for three straight days. The F&O expiry has been higher, but short positions are believed to have been carried over amid a spate of headwinds. We expect another muted start today, as world markets are still nervous about the political gridlock in the US over the sensitive issues of debt and deficit.



In news just in, the US House has cancelled Thursday’s vote on Republican debt-ceiling bill. US stock futures briefly slip in after-hours electronic trading while the dollar fell vs. yen after the House debt vote was delayed. Obama administration officials will brief the public on Friday on priorities for paying the nation’s bills if the $14.3 trillion limit isn’t raised.

Asian markets are mostly lower while European stocks too finished in the red. US equity indices slumped in late trade.

Back home, corruption cases continue to hog the headlines. Social activist Anna Hazare is apparently not happy with the draft Lokpal Bill approved by the Cabinet, and has threatened another fast-unto-death.

On the other hand, the fate of scam-tainted Karnataka chief minister BS Yeddyurappa has been sealed with the BJP asking him to step down in the wake of the Lokayukta report on illegal iron ore mining.

The monsoon session of parliament begins next week and promises to be another stormy affair. A few very important bills are slated to be presented in parliament. Hopefully, the warring political class will set aside their differences and clear at least some of them.

Lots of results are due today and in the next few days. US GDP data will be a key monitorable for the day.

FIIs were net buyers of Rs 646.6mn in the cash segment on Thursday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net buyers at Rs 4.09bn on the same day. FIIs were net sellers of Rs 6.04bn (provisional) in the F&O segment.

The foreign funds were net buyers of Rs 1.08bn in the cash segment on Wednesday, according to the final SEBI data. Mutual Funds were net sellers of Rs 1.75bn on the same day.

Results Today: Alok Industries, Aptech, BEML, BEL, Bhushan Steel, Blue Star, Central Bank, CESC, Dena Bank, Federal Bank, ICICI Bank, Idea Cellular, Indian Bank, JB Chemicals, Kalpataru Power, Kansai Nerolac, M&M Financial, Mcleod Russel, NDTV, Neyveli Lignite, Nirma, Orchid Chemicals, PFC, Raymond, SAIL, Siemens, Sterlite Technologies, Syndicate Bank, Torrent Power, TV Today, TVS Motor, United Phosphorus and Voltas.

Global Data Watch: Germany's retail sales, UK housing prices, EU CPI, US GDP data, Chicago PMI and consumer sentiment.

Capital markets regulator SEBI has given a green light to the new takeover regulations. As per the proposed new norms, a company can acquire up to 25% in a firm without requiring to make an open offer. The new takeover code also raises the open offer size from a minimum of 20% at present to 26%, providing an exit for more investors.

In addition, removal of the non-compete fee will ensure that all shareholders of the target firm are treated fairly. While most of the recommendations by the C. Achuthan panel have been accepted, SEBI has turned down the committee’s suggestion on the 100% open offer.