Confidence on the Street!

Confidence comes not from always being right but from not fearing to be wrong. ~Peter T. Mcintyre.

The market will hope nothing goes wrong soon. For now, world markets are breathing little easy now that Greek’s PM has shelved the controversial plebiscite on the EU bailout. However, George Papandreou may still be in trouble as he braces for Friday’s confidence vote in parliament.

Indian indices will rise at start following a relief rally across global equities. But, the undertone may remain edgy over the ongoing political instability in Greece. Reports also suggest that Italian premier is under pressure to resign.



G20 leaders gathered in France for this week's summit have urged eurozone counterparts to stabilise Greece and fix the two-year-old debt crisis. Leading nations have also agreed to boost the IMF war chest to deal with potential emergency.

Meanwhile, the ECB has cut interest rates by 25 bps amid looming eurozone recession and turmoil in Greece. Italian bond yields softened post the ECB move after having jumped to euro area record. The new ECB president Mario Draghi has also left the door open for another rate cut next month. The G20 summit and US jobs data are among the crucial overseas events to keep on one’s radar for Friday.

Back home, inflation continues to be in focus with food inflation jumping to nine-month peak. Petrol prices have been hiked by nearly Rs 2 per litre. Services PMI shrunk for the third successive month.

The Nifty rebounded from 5200 levels on Thursday and held on to the 100 DMA support of 5232. The Nifty has been trading in the range of 5200-5335 for the past three sessions. It may head further north once it breaks above 5335.

Fund flows have virtually come to a standstill amid growing jitters over the fate of Greece and its fallout on the eurozone economy.

FIIs were net buyers of just Rs 154.5mn (provisional) in the cash segment on Thursday, according to NSE data. The domestic institutional institutions (DIIs) were net buyers of mere Rs 19.1mn on the same day.

The foreign funds were net sellers of Rs 4.52bn in the F&O segment on Thursday, as per provisional NSE data.

FIIs were net buyers at Rs 1.94bn in the cash segment on Wednesday, according to SEBI web site. Mutual Funds were net sellers at Rs 488mn in the cash segment on the same day.

Key Results Today: Apollo Hospitals, Bharti Airtel, Claris Lifesciences, Elder Pharma, Elecon Engineering, GSK Consumer and GSK Pharma, Godfrey Phillips India, Gokaldas Exports, HCL Infosystems, HEG, Marico, Nagarjuna Construction, Nestle India, Network18 Media, ONGC, PSL, Tulip Telecom, TV Today and TV18 Broadcast.

Global Data Watch: G20 summit at Cannes (France), Reserve Bank of Australia (RBA) policy statement, Germany and EU services PMI reports, Germany's factory orders, US unemployment rate and US non-farm payrolls.