Global woes persist

Worry never robs tomorrow of its sorrow, it only saps today of its joy. - Leo F. Buscaglia.

Although world markets have recovered from the early week shake-up there is no end in sight to the plethora of problems confronting the world and the Indian economy. The Nifty has held on to important support of 5200. There is no immediate threat to the intermediate up-trend as long as Nifty sustains above 100 DMA of 5232 on a closing basis.



Indian indices may start in the red despite overnight rally in the US and European markets. The Hang Seng and Kospi have tumbled while the Chinese stocks are up. Japanese markets are shut today. Investors should keep an eye on results and weekly inflation data. FII inflows have stalled amid heightened macro-economic uncertainties.

Reports suggest that the proposed referendum will decide whether or not Greece stays in the eurozone. Greece won’t get a sixth tranche of aid unless it adopts the proposals outlined last week, warns French president Nicolas Sarkozy. Greek PM has been summoned to Cannes for the G20 meeting.

Meanwhile, the Fed has maintained status quo on rates and has pledged to take more measures to support US economic recovery. However, the it has cut GDP growth forecast while also upping the unemployment rate outlook.

FIIs were net sellers of Rs 77.8mn (provisional) in the cash segment on Wednesday, according to NSE data. The domestic institutional institutions (DIIs) were net sellers at Rs 77.9m on the same day.

The foreign funds were net sellers of Rs 6.49bn in the F&O segment on Wednesday, as per provisional NSE data.

FIIs were net buyers at Rs 335mn in the cash segment on Tuesday, according to SEBI web site.

Key Results Today: Ashok Leyland, Gujarat Gas, JSL, Jubilant Foodworks, Kesoram, Manappuram Finance, Prestige Estates, SAIL, Sun TV Network, TTML, TVS Motor, Welcorp and Whirlpool of India.

Global Data Watch: ECB interest rate decision, US weekly jobless claims, US factory orders and services PMI data from across the globe.