Getting on track with big events!

Those who have a one-track mind, their train of thoughts often become derailed – Anonymous.

The first of the ‘big event’ days of the week is here with eyes fixed on Railway Budget and February inflation. The market doesn’t seem to be showing any signs of nervousness and seems to be well on track for now. The key stock indices have rallied quite smartly, belying fears of weakness following Congress’ poor show in the state polls. The grand old party continues to face political heat on several fronts – yet again exposing its chinks.



The start is likely to be good today on a worldwide bounce in equities. The Nifty closed convincingly above the resistance of 5420. This has revived the positive momentum with resistance seen around 5500.

Things are more or less sanguine globally, as optimism over the US economy and eurozone’s efforts to quell its debt crisis have countered worries over slowdown in China. Risk tolerance is up again, thanks in part to the loose monetary policy pursued by developed nations.

The Fed has left rates and stimulus steady citing improvement in the job market and subdued inflation. US market cheered the FOMC move and encouraging retail sales. The Nasdaq topped 3000 for the first time in 11 years.

Trend in FII flows: The FIIs were net buyers of Rs 8.72bn in the cash segment on Tuesday while the domestic institutional investors (DIIs) were net sellers of Rs 4.33bn, as per the provisional figures released by the NSE.

The FIIs were net sellers of Rs 3.03bn in the F&O segment on Tuesday, according to the provisional NSE data.

The foreign funds were net buyers of Rs 13.87bn in the cash segment on Monday, as per SEBI web site.

Global Data Watch today: Australia consumer confidence, Australia housing starts, Japan industrial production, UK unemployment rate, Eurozone inflation, Eurozone industrial production, US current account, US import price index and Fed chairman Ben Bernanke's speech.