Fed comes as saviour; A relief rally on cards for markets

The global sentiments improved after the Federal Reserve pledged to keep interest rates near zero. So a bounce back is expected for the Indian markets in the opening trade.

Headlines for the day:

ABB to acquire Baldor Electric India
Oberoi, RIL plan property tie-up
Core Projects bags Rs 124 crore order



Major corporate action

Zodiac Clothing Company board to consider bonus shares
Results: Adani Enterprises, Glaxosmithkline Pharma, Indian Oil, NHPC, MTNL

Indian indices

To soothe investor nerves, US Federal Reserve pledged to keep interest rates super low for the next two years. This has led to a relief rally across the globe, which may lift Indian markets in the opening trade.

The commodity prices have come down and therefore the macro picture looks much better, which may provide the much needed support.

However, the Sensex had surfaced a huge loss of close to nearly 450 points from last Friday (August 05, 2011) while the losses for the Nifty too were staggering about 140 points.

Companies scheduled to report quarterly results today include Adani Enterprises, Apollo Hospitals Enterprise, Bharat Forge, Financial Technologies (India), Glaxosmithkline Pharmaceuticals, Indian Oil Corporation, NHPC, Rural Electrification Corporation, Tata Power Co., Tata Global Beverages, VIP Industries, MTNL; stocks will be in focus.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs1109.70 crore on August 09, 2011 as compared to the net sell of Rs452.90 crore on August 08, 2011. The domestic investors have bought Indian shares worth a net of Rs325.10 crore on August 08, 2011. The data is as per the SEBI website.

Global signals

The European markets snapped a seven-session losing streak on Tuesday (August 09, 2011), as investors stepped in to buy beaten-down shares after recent marked declines.

The US markets rallied on Tuesday in a volatile session as investors struggled to decipher the Fed's signals on the economy after a dizzying two-week slide.

The Asian markets rebounded on Wednesday (August 10, 2011) drawing comfort from the US, where the Federal Reserve's pledge to keep interest rates low for two more years, pushing stocks sharply higher. SGX Nifty was trading 55 higher, pointing for a strong start on the Indian bourses.

Commodity cues

Crude oil prices tumbled to the lowest level since September after the Federal Reserve said risks to the economy have increased and didn’t announce asset purchases.