Accepting the situation

Acceptance is not submission; it is acknowledgment of the facts of a situation. Then deciding what you're going to do about it. – KC Theisen.

The situation may demand caution but investors have indeed decided to take the risk. Indian equities logged one of their best weeks in recent memory, notwithstanding disappointing IIP and inflation reports. Strong earnings from Infosys coupled with growing optimism over the eurozone situation and hope of QE3 in the US were among the factors that drove the sentiment.



Much of that feel-good will spill over to this week. A positive start is in the offing owing to healthy trend across overseas markets. US indices climbed on the back of Google’s stellar results and encouraging retail sales. European benchmarks too closed higher.

Asian markets are up and about this morning after G20 finance chiefs said European leaders would decisively address the debt crisis through a comprehensive plan to be unveiled at a regional summit slated for Oct. 23.

RIL will be in focus after it reported Q2 results on Saturday. TCS and HDFC are among the big names announcing their results today.

Overall, the undercurrent seems to have improved. The continuation of this positive trend will hinge on corporate earnings, China’s GDP data (due on Tuesday), US economic statistics and European developments.

The Nifty is currently trading at a tad away from a one-month peak of 5170. A close above it could sustain the current rally and fill a major falling gap of 5330 in the near term.

FIIs were net sellers of Rs 940.4mn (provisional) in the cash segment on Friday, according to NSE data. The domestic institutional institutions (DIIs) were net sellers at Rs 2.37bn on the same day.

FIIs were net sellers of Rs 2.98bn (provisional) in the F&O segment, according to NSE web site.

The foreign funds were net buyers of Rs 6.65bn in the cash segment on Thursday, as per SEBI data. Mutual funds were net sellers at Rs 820mn on the same day.

Results Today: Granules India, HDFC, IFCI, ING Vysya Bank, Mahindra Lifespaces, Mindtree, Motilal Oswal, Peninsula Land, Persistent Systems, South Indian Bank, TCS and Zee Entertainment.