2011 - Thank God it’s over!

Year’s end is neither an end nor a beginning, but a going on, with all the wisdom that experience can instill in us. - Hal Borland.

A turbulent 2011 is drawing to a close, leaving us with a whole host of troubles that need to be conquered. The hope is that 2012 will be better, especially in the latter half. For now though, one can only indulge in conjecture. Thankfully, the start of the last trading day of 2011 is likely to be positive on the back of healthy global cues.

US stocks closed higher following encouraging data on weekly jobless claims and pending home sales. European indices finished up. Asian markets are trading mostly higher this morning.



What is not encouraging though is FII figures for Thursday. They net sold Indian shares worth Rs 10bn (provisional) in the cash segment. Local institutions were net buyers of Rs 3.23bn. F&O expiry has seen traders rolling over short positions, leaving chance for a short-covering led bounce.

The Lokpal Bill could not clear the Rajya Sabha due to resistance from several parties, including Trinamool Congress. The passage of the Bill will be in a limbo till the next session. The Lok Sabha was adjourned sine die while the Rajya Sabha ended abruptly at the stroke of midnight without the House taking a vote on the Lokpal Bill.

State-run oil companies are mulling a hike in petrol prices. The proposed move may still be nixed by the Government in view of the upcoming state polls.

Gold prices have softened due to a stronger dollar. The euro is still below $1.3. Italy’s last bond sale was a mixed bag with yields still hovering around 7%. Crude oil is firm in the wake of Iran's threat to block supply from a key sea route.

Leaders of Germany and France are likely to meet on January 9 for talks on how to quell the debt crisis. HSBC's China manufacturing PMI has come in at 48.7 for December versus provisional reading of 49. The Shanghai Composite index in China is up ~1%.

In other news, Union Bank has surprisingly cut base rate by 10 bps and NHAI infra bonds are selling like hot cakes.

The foreign funds were net buyers of Rs 2.54bn (provisional) in the F&O segment on Thursday, NSE data shows. FIIs were net buyers at ~Rs 1.7bn in the cash segment on Wednesday, according to SEBI web site.