Accept the situation…

Acceptance is not submission; it is acknowledgment of the facts of a situation.- KC Theisen.

We seem to be living in a world of guided missiles and misguided market. India entered the elite ICBM club on Thursday by successfully testing Agni-V long-range missile. The start today is likely to be slightly down due to weak global markets. US stocks fell on the back of disappointing economic data. European indices slipped on worries about Spain’s debt problems. Rumours of a possible downgrade of French rating also hurt the sentiment. Asian markets are mostly in red.
Interest rates seem to be heading down, with a few top banks lowering their base rate. Nationalised banks are reportedly under pressure from the Centre to slash borrowing costs. However, it remains to be seen whether they will also fall in line given the disparate nature of their balance sheets.




RIL and Cairn India will be in focus as they declare their results today.
India’s trade gap hit new record in FY12, adding to the pressure on external balance. Fiscal situation is also not quite healthy. Everyone’s waiting for further boost from policy action. But, given the political environment one should not be too optimistic.
The Indian indices continued to move northwards with the Nifty holding above the support of 5280 on intraday basis. The overall structure from medium term perspective still remains murky as the current upmove has not accompanied by an appreciation in the Indian Rupee. The level of 5280 could turn out to be critical if the ongoing upmove has to be sustained.
Keep an eye on the Rupee after it fell to its weakest level in more than three months on Thursday.
Important News:
Hero MotoCorp has pushed its total production capacity to seven million units.
Promoters have raised their stake in Escorts Ltd to 31.67% from 27.67%.
CAG has said that CIDCO extended undue benefits of about Rs. 4.64bn to Larsen & Toubro (L&T) with regard to Seawood railway station project.
The Centre gave approval to Cairn India to raise output from its largest oilfield in Rajasthan block by 25,000 barrels per day to 150,000 bpd.
Tata Steel's European operations have won a multi-million dollar contract to supply piping for a deepwater project in the Gulf of Mexico.
Power Grid Corporation of India Ltd has been selected as the successful bidder for establishing transmission system associated with independent power producers (IPPs) of Vemagiri area in Andhra Pradesh.
There is a good possibility that Goods and Services Tax (GST) might come in by April 2013, according to the Chairman of the Central Board of Excise and Customs (CBEC).
Key Results Today: Reliance Industries, Cairn India, Merck, Mastek, Honeywell Auto, FAG Bearings and Sundaram Clayton.
Trend in FII flows: The FIIs were net sellers of Rs. 1.02bn in the cash segment on Thursday while the domestic institutional investors (DIIs) were net buyers of 1.01bn, as per the provisional figures released by the NSE.
The FIIs were net buyers of Rs. 4.16bn in the F&O segment on Thursday, according to the provisional NSE data.
The foreign funds were net buyers of Rs. 2.82bn in the cash segment on Wednesday while the Mutual Funds were net buyers of Rs. 65mn in the cash segment on the same day, according to the SEBI figures.
Global Data Watch: G20 Meeting, Germany Producer Price Index (MoM) and (YoY) (Mar), Germany IFO Expectations (Apr), IFO Business Climate (Apr), IFO Current Assessment (Apr), UK Retail Sales (MoM) and (YoY) (Mar).