Fed up, rise up!

"One of the common denominators I have found is that expectations rise above that which is expected." -George W Bush.

A wonderful Wednesday lay in store, as the worries of the world take a backseat. After a couple of nerve-wrecking and highly volatile sessions, some semblance of stability was much needed. US stocks survived a mid-session drop to end smartly higher. Fed’s assurance that it will keep rates at record low till at least the middle of 2013 was the main driving force. European markets too rebounded from day’s lows.



Asian markets are hale and hearty this morning. And of course, the start on local bourses will also be positive. How long we can sustain this relief rally is the question now. Much will hinge on the upcoming data points from the US, Eurozone and other important parts of the world. Any policy action (local or/and global) to perk up sentiment may also come in handy.

For India, the key catalysts could be sharply lower commodity prices, particularly that of crude oil. There may also be some relief on fuel prices if crude stays low. One must navigate the next few days carefully, as markets begin to settle down. Fund flows will also be important for India and so will be Friday’s IIP data.

FIIs were net sellers of Rs 21bn in the cash segment on Tuesday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net buyers at Rs 14.12bn on the same day. FIIs were net buyers at Rs 25.51bn (provisional) in the F&O segment.

The foreign funds were net sellers of Rs 11.09bn in the cash segment on Monday, according to the final SEBI data. Mutual Funds were net buyers of Rs 3.25bn on the same day.

Results Today: ABG Shipyard, Adani Enterprises, Adhunik Metaliks, Advanta India, Apollo Hospitals, Bharat Forge, Eros International, Eveready, Everonn, Fame India, FT, GSK Pharma, Hanung Toys, Hotel Leela, IOC, Kingfisher Airlines, Kohinoor Foods, Koutons, KRBL, LMW, Lovable Lingerie, MTNL, NHPC, Page Industries, REC, Tata Power, Tata Global Beverages and VIP Industries.

Global Data Watch: Germany's CPI, BOE Governor's Speech, BOE inflation report, US wholesale inventories, EIA crude oil stocks, UK consumer confidence and Japan's core machinery orders.