Getting worked up!

Three Rules of Work: Out of clutter find simplicity; From discord find harmony; In the middle of difficulty lies opportunity.- Albert Einstein.

There remains a lot of clutter in terms of news flow. A weaker-than-expected US jobs report served as the backdrop for the latest pullback in global equities. China’s higher-than-estimated inflation data and reports of discord with North Korea resuming nuclear tests added to the gloom. US stock indices lost ~1% each. European markets were shut due to extended Easter holidays.

Asian markets are mixed today with those not open for trading on Monday falling and others more stable. We see a steady opening for our markets. The key stock indices may trade sideways in a range today. The next few sessions will see them react to IIP and inflation data apart from the Infosys results. Market participants are also cautious ahead of next week’s RBI policy meeting. External cues will also continue to play a role in driving the sentiment in the near-term.



For India, the biggest concern is the continued uncertainty over the proposed GAAR provisions. FII inflows have turned negative. In fact, even trading volume has taken a hit this month. The ball is in the Government’s court to clear the air surrounding this thorny issue.

The Nifty has violated key support of 5275 on a closing basis. This move could reinforce downward momentum in the near term with 5280 acting as resistance.

Trend in FII flows: The FIIs were net sellers of Rs 2.69bn in the cash segment on Monday while the domestic institutional investors (DIIs) were net sellers of ~Rs 1.05bn, as per the provisional figures released by the NSE.

The FIIs were net sellers of Rs 10.84bn in the F&O segment on Monday, according to the provisional NSE data.

The foreign funds were net buyers at Rs 1.34bn in the cash segment on April 4, according to the SEBI figures. Mutual Funds were net sellers of Rs 450mn on the same day.

Global Data Watch today: Australia's business confidence, China's trade balance, Bank of Japan policy meeting, Germany current account balance, Germany trade balance and speeches by two Federal Reserve officials.