Pushing for a pause!

Neither situations nor people can be altered by the interference of an outsider. If they are to be altered, that alteration must come from within. - Anonymous.

Looks like the Government has pressed the panic button post the dismal IIP data. The Finance Minister indirectly urged the RBI to halt its tightening. His economic advisor has gone a step ahead by blaming the series of rate hikes for the economic slowdown. Markets of course are also hoping for a pause from the RBI. Whether the central bank obliges is anybody’s guess.



Talking of macro-economic factors, inflation for August will be out today. It was at 9.22% in July. The fact that the RBI’s aggressive monetary stance hasn’t tamed inflation is a cause for concern. It is debatable whether the RBI has gone too far or not.

The start is likely to be a positive one due to improved global cues. US stocks closed higher as did their counterparts across the Atlantic. Asian markets are mostly up.

We expect the intraday volatility to prevail amid looming uncertainty over the RBI policy meet on Friday and global headwinds. The Nifty is likely to trade in a range between 4700 and 5200 in the near term.

FIIs were net sellers of Rs 4.68bn in the cash segment on Wednesday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net buyers at Rs 1.21bn on the same day.

FIIs were net buyers of Rs 4.24bn (provisional) in the F&O segment.

The foreign funds were net sellers at Rs 7.79bn in the cash segment on Monday, as per SEBI data. The mutual funds were net sellers of Rs 940mn on the same day.

Global Data Watch: China FDI, Japan industrial production, UK unemployment rate, EU industrial production, US PPI, US retail sales, US business inventories and EIA crude oil stocks data.