Better, though not perfect!

A good plan, violently executed now, is better than a perfect plan next week. - George S. Patton.

The start today could be a tad better after US stocks snapped an eight-session losing streak. Asian markets are not doing too badly. The big question is whether we can covert any relief pop into wider gains. Given the macro-economic backdrop (both local and global), that may be slightly tough.

Locally, elevated inflation and its impact on interest rates is the biggest headwind. GDP growth forecast has also been scaled down. Monsoon has been below par. There are fears of the Government overshooting its budget deficit. Disinvestment is in a limbo. The Centre is under attack for a number of issues – from corruption to economic management. The RBI is no mood to relent even as it seeks support from New Delhi.



Overseas too things appear to have gone from bad to worse. The US has managed to avert a default but worries prevail over a possible downgrade. Recent data points have not been encouraging. The debt crisis continues to hound the eurozone.

A sideways pattern with a negative bias is what we foresee in the near term. The key indices may trade in a tight band.

Risk aversion is high among global investors, with gold at new record high. Bonds, Swiss franc and Japanese yen are also being sought as safe haven assets. Crude oil has softened though.

Meanwhile, excise duty hikes on certain products like diesel cars and tobacco may be in the works, according to some media reports. The move is seen as the Centre’s attempt to make up for any possible slip-ups on the revenue front.

FIIs were net sellers of Rs 8.69bn in the cash segment on Wednesday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net buyers at Rs 4.22bn on the same day. FIIs were net sellers at Rs 13.82bn (provisional) in the F&O segment.

The foreign funds were net sellers of Rs 827mn in the cash segment on Tuesday, according to the final SEBI data. Mutual Funds were net sellers of Rs 185mn on the same day.

Results Today: Adani Power, Bombay Dyeing, Cummins India, Diamond Power, Educomp, Hindustan Motors, Indian Hotels, Mundra Port, Uflex and Zicom.

Global Data Watch: UK Halifax house prices, German factory orders, rate decisions by BOE and ECB and weekly jobless claims.

Reports suggest that the Bank of Japan (BOJ) has moved its monetary-policy decision ahead by one day. The Japanese central bank could announce moves to support the Ministry of Finance's intervention in the forex market. The two-day policy meeting will be shortened to one day, with the decision now expected later on Thursday.

BL Kashyap could take a hit amid reports of a large PF fraud. Bharti Airtel may remain in the spotlight after announcing its Q1 results. DLF says it may sell two non-core assets in Q2. Godrej Properties and Jet Airways will be in focus after they finalised a deal to develop a plot in BKC, Mumbai. Essar Steel has completed its acquisition of Zimbabwe Iron & Steel. ONGC says it will start production from the KG basin in a month.

Retail stocks may also hog some limelight after BJP leader Yashwant Sinha opposed the Government's move to open up multi-brand retail to FDI. On the other hand, reports say that the Commerce Ministry may soon release a Cabinet note on allowing 51% FDI in multi-brand retail. Sugar stocks could also gain amid reports of some progress being made in the attempt to decontrol the sector.