December delight is here

To overcome difficulties is to experience the full delight of existence - Arthur Schopenhauer The market seems keen on repeating the historic trend of December being a delightful month as it has for most years in the last two decades. The Nifty has managed to overcome the 5800 hurdle for now thanks to a bout of short covering and renewed buying interest. The outlook remains optimistic at start with global cues mostly pointing upwards. The rally could well continue if the government manages to get its act together on crucial pending bills. For the day, investors will closely keep an eye on the GDP data for the quarter ended September 30. Other data expected include fiscal deficit numbers and possibly the growth figures of Eight Infrastructure industries. Thursday’s F&O expiry saw the indices hitting multi-month highs. A lot of the undercurrent remains on the domestic front and the global front. A slight worry is the rush in certain mid-caps which investors enter when the markets are in a frenzy. The Indian currency gained 61 paise on Thursday to close at 54.84 against the dollar. Asian markets are in the green and could end the week higher. Japan’s cabinet cleared a second economic stimulus package. Industrial production numbers showed an ‘unexpected’ increase. US stocks gained marginally. US GDP grew at a 2.7% annual rate in the third quarter. Weekly claims for unemployment benefits fell 23,000 to 393,000. Pending home sales jumped 5.2% in October. Investors are swinging on some hopes regarding handling of the fiscal cliff. Treasury Secretary Tim Geithner held meetings with Congressional leaders while President Obama lunched with Republican Mitt Romney. Results Today: BF Utilities, Cerebra Integ, Welspun Global,Welspun India,Tulip Telecom Trends in FII flows: The FIIs were net buyers of Rs15.75bn in the cash segment on Thursday, while the domestic institutional investors (DIIs) were net sellers of Rs8.96bn, as per the provisional figures released by the NSE. The foreign funds were net buyers of Rs13.55bn in the cash segment on Thursday, according to the SEBI figures. Global Data Watch: Gfk Consumer Confidence (Nov) GBP, Private Sector Credit (MoM) (Oct) AUD, Private Sector Credit (YoY) (Oct) AUD, M3 Money Supply (YoY) (Oct) NZD, Vehicle Production (YoY) (Oct) JPYAnnualized Housing Starts (Oct) JPY, Construction Orders (YoY) (Oct) JPY, Housing Starts (YoY) (Oct) JPY, Retail Sales (YoY) (Oct) EUR, Retail Sales (MoM) (Oct) EUR, Consumer Spending (MoM) (Oct) EUR Producer Prices (MoM) (Oct) EUR, HICP (YoY) (Nov)Preliminar EUR, KOF Leading Indicator (Nov) CHF, Bundestag vote on Greek aid EUR, Producer Price Index (MoM) (Oct) EUR, Producer Price Index (YoY) (Oct) EUR, Unemployment (Oct) EUR, Consumer Price Index (EU Norm) (MoM) (Nov)Preliminar EUR, Consumer Price Index (EU Norm) (YoY) (Nov)Preliminar EUR, Consumer Price Index (MoM) (Nov)Preliminar EUR, Consumer Price Index (YoY) (Nov)Preliminar EUR, Consumer Price Index (YoY) (Nov)Preliminar EUR, Retail Sales (YoY) (Sep) EUR, Unemployment Rate (Oct) EUR, Core Personal Consumption Expenditure - Price Index (MoM) (Oct) USD, Core Personal Consumption Expenditure - Prices Index (YoY) (Oct) USD, Gross Domestic Product (MoM) (Q3) CAD, Gross Domestic Product (YoY) (Q3) CAD, Gross Domestic Product Annualized (QoQ) (Q3) CAD, Personal Consumption Expenditures - Price Index (MoM) (Oct) USD, Personal Consumption Expenditures - Price Index (YoY) (Oct) USD, Personal Income (MoM) (Nov) USD, Personal Spending (Oct) USD, Chicago Purchasing Managers' Index (Nov) USD In other news in the media Hero MotoCorp Ltd reported retail sales of over 1.1mn units in October and November. (BL) GMR Infrastructure is exploring legal options against the Maldives government for terminating its US$500mn airport development contract for running the Male airport. (BS) L&T Construction said that it has secured orders valued at over Rs11.78bn in November. (BL) Tata Motors will shut down its facility from November 29 to December 1 ‘as part of an aggressive effort to align production with demand’. (BL) Bank credit grew 16.9% and deposits by 13.4% year on year in the fortnight ended November 16. Banks disbursed new credit worth Rs347.7bn in the fortnight, while they lost deposits worth Rs257.9nb. (BS)