No belief yet!

Drugs are not always necessary, but belief in recovery always is. - Angel Cordero.

Self belief and conviction appear to be in short supply – whether it’s the Government or Indian cricket team. The same also could be said of investors, some of whom have badly burnt their fingers in the recent collapse. But, we may see some stability today after the turmoil and extreme volatility of four straight weeks.



However, overseas investors still seem to be missing from action. FIIs continue to be net sellers of Indian equities while their local counterparts have been doing exactly the opposite. Slowly and steadily they have been picking up stocks during the course of the recent correction.

Earnings growth may not be scorching in the coming quarters given the moderation in the economy, elevated inflation, high borrowing costs and a global slowdown. But, along with China and a few other EMs, India is still a better place for investments even as the so-called "western" world is facing multiple problems.

Some uncertainties will prevail in the near term though. Therefore, one needs to be very choosy and guarded. F&O expiry on Thursday may make the market choppy. For the day, all eyes will be on provisional manufacturing PMI reports from China and eurozone besides Germany’s ZEW economic sentiment survey and US new home sales.

FIIs were net sellers of Rs 7.86bn in the cash segment on Monday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net buyers at Rs 1.43bn on the same day. FIIs were net sellers at Rs 11.82bn (provisional) in the F&O segment.

The foreign funds were net sellers of Rs 12.81bn on Thursday and Friday, as per SEBI data.