Waiting to be transformed!

"..A truly stable system expects the unexpected, is prepared to be disrupted, waits to be transformed." - Tom Robbins.

After a tumultuous week and a nervous weekend, market participants can at least look forward to a stable opening. The US and European stock indices managed to claw their way back on Friday. But on the week markets across the globe were down substantially. Asian markets too seem to be struggling to stage a meaningful comeback. Hence, one must be careful and guarded in approaching the markets in the near term.



The problems confronting Greece are yet to be sorted out. Eurozone members are bickering over possible options to contain any adverse fallout on the region. Global leaders gathered in the US for World Bank and IMF meetings failed to calm the markets. It now remains to be seen whether leaders in the US and Europe will set aside political differences to prevent another recession in their backyard.

Back home, the UPA II continues to be under pressure owing to the 2G scam. A sliding rupee is adding to the list of troubles. We continue to urge caution given the uncertain backdrop. Any close below 4830 on the Nifty could trigger fresh selling.

Things may turn bit more volatile ahead of the F&O expiry on Thursday. Market players would look for emergency steps from the policymakers to cushion the blow on India from any untoward development(s) overseas.

Companies with low promoter holding will be in focus as SEBI has notified a new takeover code.

Absence of bad economic news from the US this week may perhaps help counter the lack of consensus in Europe on how to avert another major financial crisis. Still, growth has virtually come to a halt in the US amid a bitter congressional debate on how to slash a yawning budget deficit and mounting debt.

Meanwhile, in Europe leaders are still divided on how to rescue debt-stricken Greece and shore up the region’s financially weak banks. Investors are likely to remain jittery until the eurozone manages to seal an effective and acceptable rescue plan.

FIIs were net sellers of Rs 12.79bn in the cash segment on Friday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net buyers at Rs 7.65bn on the same day.

FIIs were net sellers of Rs 1.19bn (provisional) in the F&O segment.

The foreign funds were net sellers of Rs 12.34bn in the cash segment on Thursday, as per SEBI data.

Global Events To Watch: Germany's IFO business sentiment report and US new home sales.