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The start is likely to be subdued as investors digest the disappointing GDP report. It is high time the ‘powers that be’ in New Delhi came up with substantial dose of tonic for the Indian economy. Though external environment and RBI’s tightening have played a role in growth deceleration, policy inertia is as much to blame.
Stay committedto your decisions, but stay flexible in your approach.- Tom Robbins.

While the ECB’s second LTRO auction has seen robust demand, its counterpart across the Atlantic is not keen on additional stimulus. Federal Reserve Chairman Ben Bernanke has refused to play ball when it comes to QE3. He has not given any indication of further monetary support for the US economy. Stock indices in the US and Europe erased gains and closed lower following the disappointing commentary from Bernanke.



Asian markets are trading mixed and indecisive. However, the Chinese market is holding up following better-than-expected manufacturing PMI. Markets will also react to manufacturing PMI data from across the globe today.

The start is likely to be subdued as investors digest the disappointing GDP report. It is high time the ‘powers that be’ in New Delhi came up with substantial dose of tonic for the Indian economy. Though external environment and RBI’s tightening have played a role in growth deceleration, policy inertia is as much to blame. Keep an eye on monthly auto and cement volumes apart from the latest trade data.

ONGC will remain in the spotlight as the Government will auction a 5% stake in the state-owned energy major. A panel of ministers has fixed a floor price of Rs. 290 per share for the share sale in ONGC. The stock was up smartly in Wednesday's trade.

A close above 5300 for February has led to the confirmation of a breakout on Monthly candlestick chart. This has reinforced a bullish momentum in the Indian markets. Hence, 5300 is likely to emerge as a good support as it coincides with the trough of 'bullish harami' pattern. Some resistance is expected between 5500 and 5600 levels.

Trend in FII flows: The FIIs were net buyers of Rs. 5.79bn in the cash segment on Wednesday while the domestic institutional investors (DIIs) were net sellers at Rs. 4.31bn, as per the provisional figures released by the NSE.

The FIIs were net sellers of Rs. 4.9bn in the F&O segment on Wednesday, according to the provisional NSE data.

The foreign funds were net buyers of Rs. 8.56bn in the cash segment on Tuesday (Feb. 28), as per SEBI web site. Mutual Funds were net buyers of Rs. 1.08bn on the same day.

Global Data Watch: Japan's auto sales, Australia's manufacturing PMI, China's manufacturing PMI, Germany's manufacturing PMI, Eurozone manufacturing PMI, UK's manufacturing PMI, US manufacturing PMI, UK housing prices, Eurozone unemployment rate, US weekly jobless claims, US personal income and consumption, US vehicle sales and US construction spending.