Drizzling gains!

Danger and delight grow on one stalk. – Proverb. The slight drizzle seems to remind one that monsoons are getting closer and hopefully will be normal. In fact, we’ve had a rather pleasant start to the week, with the main indices spurting on a mild recovery in the global risk appetite. The Rupee too gained from a global bounce. The euro rose after Greece's pro-austerity party topped polls ahead of June elections, raising hopes that the debt-strapped nation will stick to budget cuts and stay in the euro bloc. However, the European markets erased all the gains amid growing concern about Spain’s shaky banking sector. Shares of Bankia sank 28% in Madrid after news that the Spanish government will inject €19bn into the troubled lender. Markets in the US were closed for the Memorial Day holiday. All eyes will be on the latest US monthly jobs report on Friday. Final PMI data for the Chinese manufacturing sector will also be on investors’ radar. For India, the driving force will be earnings from some of the big names, besides data on Q4 GDP, manufacturing PMI, exports and monthly auto sales. The Nifty has recovered smartly from recent lows. A further advance from here hinges on multiple factors - FII flows, policy announcements and global cues. The Nifty made a sharp upmove on Monday and surpassed the 4960 levels. The short term outlook has turned slightly positive, but the Nifty must cement its position above the breakout levels for at lease a couple of trading sessions. Key Results Today: ABG Shipyard, Apollo Hospitals, Aurobindo Pharma, Bombay Rayon, Chettinad Cement, EIH, Everest Kanto, GMR Infra, Godfrey Phillips, Hindustan Copper, Hindustan Organic Chemicals, Hotel Leela Venture, HPCL, IPCA Lab, Jindal Stainless, Kolte Patil, Lanco Infra, NCC, ONGC, Phoenix Mills, Power Grid Corporation, Praj Industries, PVR, SAIL, Shipping Corp, Shree Renuka Sugars, Steel Strips, Steel Strips Infra, Steel Strips Wheels, Steelcast, Sun Pharma, Tata Motors, United Spirits, Welcorp Trend in FII flows: The FIIs were net buyers of Rs 1.08bn in the cash segment on Monday while the domestic institutional investors (DIIs) were net buyers of Rs 1.67bn, as per the provisional figures released by the NSE. The FIIs were net buyers of Rs 3.39bn in the F&O segment on Monday, according to the provisional NSE data. The foreign funds were net sellers of Rs 3.64bn in the cash segment on Friday and the mutual funds were net buyers of Rs 1.62bn on Friday, according to the SEBI figures. Global Data Watch today: Japan household spending, Japan unemployment rate, Japanese retail sales, Australia HIA New Home Sales (Apr), UK CBI Distributive Trades Survey – Realized (May), Germany Consumer Price Index (May), US S&P/Case-Shiller Home Price Indices (Mar) and US Consumer Confidence (May).