Finally some rest!

Rest is the sweet sauce of labor. - Plutarch.

Finally, we witnessed what many would call a meaningful correction. The indices deserved some rest after all. Red flags have been raised over the seemingly unstoppable rally. Wednesday’s drop was only the second such fall this year. That goes to show the groove that the market is in, thanks largely to the liquidity deluge unleashed by global central banks. Wednesday’s provisional FII figure should provide some succor on the F&O expiry day.

The start is likely to be rather subdued. Barring China, most Asian markets are down. US indices paused after a three-session winning streak. European markets finished lower amid doubts over the second bailout for Greece.



Fitch Ratings cut Greece's sovereign credit rating to C from CCC. The eurozone's composite PMI fell in February, raising the specter of recession. Europe and Greece may continue to be in the spotlight in the coming days as well.

Crude is at a nine-month peak while gold is at three-month high. The dollar is at seven-month high vs. the yen. We could see a choppy session with intraday gyrations possibly peaking in the afternoon.

Trend in FII flows: The FIIs were net buyers of Rs 8.29bn in the cash segment on Wednesday while the domestic institutional investors (DIIs) were net sellers at Rs 13.32bn, as per the provisional figures released by the NSE.

The FIIs were net sellers of Rs 4.11bn in the F&O segment on Wednesday, according to the provisional NSE data.

The foreign funds were net buyers of Rs 14.94bn in the cash segment on Tuesday (Feb. 21), as per SEBI web site. The Mutual Funds were net sellers of Rs 3.37bn in the cash segment on the same day.

Global Data Watch: Germany IFO business sentiment index, US weekly jobless claims and US housing price index.

The Prime Minister’s Economic Advisory Council has asked the Government to rein in fiscal deficit, raise indirect taxes, cut diesel subsidies and check rising current account deficit to bring the economy back on a higher growth trajectory.

Private power producers have sought Government's intervention for immediate allocation of gas to projects recommended by the Power Ministry, while seeking a solution to the coal pricing issue.

The Union Cabinet's nod to allow foreign airlines to buy up to 49 % stake in Indian carriers is likely to see light of the day only after the Union Budget.

US drug regulator says it will import the generic version of the cancer drug Lipodox from Sun Pharma to meet a supply shortage.

Reliance Industries (RIL) has challenged market regulator SEBI's probe into its alleged violation of takeover norms over a promoter stake purchase in 2000.

LIC will buy fresh shares in Allahabad Bank and Punjab National Bank.

Econet Wireless is seeking at least US$3.1bn in damages from Bharti Airtel in a dispute over ownership of its subsidiary Airtel Nigeria, according to a suit filed.

Hero MotoCorp has inked an agreement with US-based Erik Buell Racing (EBR) to source high-end technology for developing new products.

The central government has awarded the Rs8.55bn Bathinda-Jammu-Srinagar gas pipeline project to Gujarat State Petronet Ltd (GSPL).