Recovering from the shock!

To get into the best society nowadays, one has either to feed people, amuse people, or shock people - Oscar Wilde.

It's neither amusing nor interesting. It's a bit shocking. Some call the RBI's move a big leap of faith while many industries are moaning on their fate. Dr. D. Subbarao has upped the ante in the battle against inflation by jacking up rates by an aggressive 50 bps. What’s more, the central bank doesn’t seem to be lowering its guard either. It is ready to sacrifice a little bit of growth in the near term to improve long-term prospects. A further 25-50 bps hike is not ruled out. Let’s hope for some big relief on the inflation front.



We expect a better start today and hopefully an improved close. The SGX Nifty futures in Singapore is pointing to a steady opening. Asian markets are slightly in the red though. US stocks extended losses amid no sign of a compromise between the Obama regime and the GOP. European markets finished mixed. Results will of course continue to pour in today as well. So, the action could largely be stock centric. Immediate support for the Nifty is seen at ~5550 levels, below which selling pressure could aggravate and take it to ~5430 levels.

FIIs were net sellers of Rs 1.77bn in the cash segment on Tuesday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net buyers at Rs 314.9mn on the same day. FIIs were net buyers of Rs 6.87bn (provisional) in the F&O segment.

The foreign funds were net buyers of Rs 2.4bn in the cash segment on Monday, according to the final SEBI data. Mutual Funds were net buyers of Rs 59mn on the same day.

Results Today: Alfa Laval, Asahi India, BGR Energy, BOB, Canara Bank, Chennai Petro, Dabur India, Dewan Housing, EID Parry, Engineers India, Gail, Hexaware, IDFC, Lupin, Manappuram General Finance, Marico, Nagarjuna Fertilizers, Oil India, Strides Arcolab, Trent, UCO Bank and UltraTech Cement.

Global Data Watch: Australia CPI, Germany CPI, US durable goods order and Fed's Beige Book.