Dhanteras…Customary purchases only

Pure gold does not fear furnace - Chinese Proverb.

It’s that time of the year to make those customary purchases of precious metals. While we are into the Diwali week, parts of India are witnessing power outages as generation companies run out of fuel. This has only added to the somewhat bleak scenario confronting the Indian economy. Thankfully, the start is bright on a day that is celebrated as Dhanteras. Asian markets are up amid optimism over a plan to tame the eurozone debt crisis. Encouraging trade data has lifted Japanese shares but Chinese stocks are subdued.




US and European equities rallied on Friday amid hope of a decisive plan at the EU summit. European leaders are said to be making progress towards a wide-ranging plan to deal with the eurozone credit crisis. An announcement on the eurozone debt crisis is likely on Wednesday.

For Indian markets, the focus will be on Tuesday’s RBI review. A sticky inflation, a sliding rupee, poor Central finances and talk of another round of easing overseas will make it tough for the RBI not to lift rates. F&O expiry and earnings could result in extra volatility tomorrow.

Indian markets will be shut on Wednesday and Thursday for Diwali holidays.

Indian indices last week saw some consolidation after a sharp rally in the previous week, with the Nifty closing below 5050 levels. Last week's consolidation move resembles a second leg of corrective phase. A move past 5170 levels could see the Nifty go past 5300 levels in the near term.

ADAG companies, Sun TV and DB Realty will be in the spotlight after a special CBI court framed charges against all the 17 accused in the 2G scam. Airline stocks might fly on a report that the Government is contemplating allowing foreign carriers to pick up stake in domestic airlines.

FIIs were net sellers of Rs 2.34bn (provisional) in the cash segment on Friday, according to NSE data. The domestic institutional institutions (DIIs) were also net buyers at Rs 733.6mn on the same day.

Key Results Today: Concor, Delta Corp, EID Parry, Gail India, ITC, M&M Financial, NFL, Pfizer India, Piramal Glass, Sterlite Industries, Strides Arcolab, Tata Coffee, Titan, Union Bank and Wyeth.

Global Events Today: Provisional PMIs of manufacturing and services from across the globe.