Putting things in order!

Set all things in their own peculiar place, and know that order is the greatest grace.- John Dryden.

It appears to be consolidation time for the markets after coordinated central bank action lifted the sagging spirits briefly. The opening is likely to be tepid. Asian markets are mostly down following the overnight declines in Europe. US indices finished nearly flat. All eyes will be on the US monthly jobs report, to be released before the US market opens.

The good news is that FIIs have been net buyers in the last couple of sessions. Another encouraging tiding is that food inflation has softened lately. Hopefully, this trend will continue, giving much-needed elbow room to the RBI for keeping status quo on rates. Reduction in rates is still some time away though.



On the fiscal side, the Government has lost its plot. Disinvestment programme never took off. It is now hoping to return to the path of fiscal prudence in FY13. Meanwhile, the parliament gridlock continues over FDI in retail issue. The Centre is trying to persuade key allies amid calls for a rollback of the Cabinet move.

The key indices could remain choppy and rangebound in the near term. Stay vigilant and cautious.

The EU summit next week will be an important event.

FIIs were net buyers of Rs 6.87bn (provisional) in the cash segment on Thursday, according to NSE data. The domestic institutional institutions (DIIs) were net sellers of Rs 7.13bn on the same day.

The foreign funds were net buyers of Rs 29.23bn in the F&O segment on Thursday, NSE data shows.

FIIs were net buyers at Rs 1.39bn in the cash segment on Wednesday, according to SEBI web site. Mutual funds were net sellers of Rs 3.06bn on the same day.