Resilient start, choppy day

Power is so characteristically calm, that calmness in itself has the aspect of strength. - Edward G. Bulwer-Lytton.

Notwithstanding a fresh round of selling in the western markets, the start here is likely to be much calmer. Other Asian markets too are showing commendable resilience. Another positive is that both, FIIs and DIIs were net buyers on Wednesday. The local institutions have been steadily buying over the course of the recent correction.



However, we would continue to urge caution as there is likely to be some pressure at every rise. Intraday gyrations could remain elevated given the murky global scenario. So, while you may be tempted to jump in seeing lower stock prices, don’t get carried away.

Coming to the offshore backdrop, the relief rally sparked by the Fed’s assurances proved to be short-lived. World equities resumed their south-bound journey amid wild rumours that France could be the next to lose its ‘AAA’ debt rating.

Banks took the hardest knock, especially the French lenders. President Sarkozy’s move to cut short his holiday and hold an emergency meeting also added to the nervousness. Given the tricky situation prevailing right now, it would be wise to remain vigilant and avoid risky bets.

FIIs were net buyers of Rs 1.52bn in the cash segment on Wednesday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net buyers at Rs 2.89bn on the same day. FIIs were net buyers at Rs 19.82bn (provisional) in the F&O segment.

The foreign funds were net sellers of Rs 19.60bn in the cash segment on Tuesday, according to the final SEBI data.

Results Today: Abbott India, Amtek India, Anant Raj, Ansal Properties, Apollo Tyres, Castrol India, Dredging Corp, Gujarat Gas, Inox, JP Power, Jubilant Foodworks, Moser Baer, Nitin Fire, Parsvnath, Reliance Infra, Reliance Power, Rolta, S Kumars Nationwide, Shree Renuka Sugars and Tata Motors.