Freedom from worries!

The secret of happiness is freedom. The secret of freedom is courage." - Thucydides

The market appears to have got some freedom after weeks of gut-wrenching price declines. Merger Monday set the tone on Wall Street. Google’s search for a mega acquisition has come in the form of Motorola Mobility which it is gobbling for US$12.5bn. Better-than-expected news on Japanese economic growth has fuelled Asian markets.

The start will be steady but the freedom from worries may not really last long. There could be some hesitation later in the day. German Chancellor Angela Merkel and French President Nicolas Sarkozy may not discuss the issue of eurobonds to help resolve the European debt crisis. Any disappointment could dampen sentiment globally.

The Dow Jones rose 214 points to end at 11,482.90. The S&P 500 gained 2.2%; and the Nasdaq added ~2%. The dust on the Standard and Poor's shocker regarding US seems to be settling. As for India, S&P says there is no immediate threat to India's sovereign debt rating of BBB, though loose fiscal policy and the government's inability to carry forward economic reforms could have implications in the medium term.

The fund flow activity will be closely watched; while some buying has been witnessed in various counters, FIIs aren’t on a shopping spree despite some discount sale.

Reports suggest that the number of cases of market manipulation and price rigging registered and investigated by SEBI in the last two years is over 190.

In other news over the long weekend, Maruti has cut down production for August due to the slowdown. ITC Ltd plans to enter the chewing gum market. Reliance Communications has raised call charges by 20% for both GSM and CDMA services in many circles.