Gains at start!

By persisting in your path, though you forfeit the little, you gain the great. - Ralph Waldo Emerson.

Tuesday’s smart turnaround is likely to spill over into today’s session owing to robust global cues. US stocks rallied, spurred by strong earnings from top names such as Ford, UPS and 3M. A strong consumer confidence report added fuel to the fire. European equities too gained after UPS reported encouraging inflows from wealthy clients. Asian stocks are mostly higher, led by Japan.

We expect a positive opening for Indian indices. The focus will continue to be on corporate results. Dabur, Exide, Patni, UB and Wipro are among the leading companies declaring quarterly numbers today.



Volatility will prevail ahead of tomorrow’s F&O expiry. But, the big event to watch out for is the FOMC meeting and Ben Bernanke’s conference. Markets will pay attention to what the Fed chief says about his strategy once the QE2 ends.

Meanwhile, the so-called carry trade is picking up amid expectations that the US and Japan will keep rates low. On the other hand, inflation continues to be the biggest problem.

Technically, 5900 has been a key resistance of late. It remains to be seen whether the Nifty manages to breach it convincingly.

Meanwhile, in news just in, ratings agency S&P has downgraded Japan's sovereign-debt outlook to negative. The move comes even as the world's third largest economy continues to battle the after-effects of the triple tragedy that rattled it in March. Also, S&P had recently scaled down its outlook on the US credit to negative, citing the big budget deficit.

Results Today: Abbott India, Bosch, Castrol India, Dabur India, Exide, Firstsource, HCL Infosystems, Ingersoll Rand India, Patni, Sasken, Subex, Tata Elxsi, UB and Wipro.

FIIs were net sellers of Rs 5.54bn in the cash segment on Tuesday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net buyers at Rs 1.6bn on the same day. In the F&O segment, the foreign funds were net sellers at Rs 899.1mn. The foreign funds were net sellers of Rs 12.7bn on Monday, as per the SEBI data. Mutual funds were net buyers at Rs 2.07bn on the same day.