Immune indices!

"Nature is often hidden, sometimes overcome, seldom extinguished." - Francis Bacon.

We’ve gone through this before and we shall overcome. Three blasts in quick succession have indeed rattled the financial-cum-business hub. Nifty futures in Singapore are pointing to a slightly lower start. History suggests that the Indian markets have always shown resilience in the face of such dastardly attacks. So, expect some recovery later in the day.



What is also encouraging is that FIIs resumed their buying binge on Wednesday after a one-day breather. Monsoon has also gathered momentum after a brief lull in late June. Talking of macro, inflation data for June will be released today. It is likely to show a spike due to the fuel price hike. The RBI next meets on July 26.

TCS and Bajaj Auto results are the other important events to keep in mind. Since the Nifty has failed to pierce the 200-DMA, that level becomes crucial from short-term perspective. However, there may be few hiccups along the way.

US stock futures and the dollar are down after Moody’s warned that it may cut US government's AAA bond rating due to rising risk of default. Asian stocks are in the red.

Earlier, US stocks rose on the prospect that the Fed policymakers will take more steps to stimulate the world’s largest economy. Fed chief Ben Bernanke has reiterated that further economic stimulus may still be considered if conditions deteriorate.

US President Barack Obama is reportedly considering summoning congressional leaders to Camp David this weekend to work on a plan to raise the debt ceiling after yesterday’s negotiations on a deficit-cutting plan of at least $2 trillion stalled.

The dollar index is down for the second day in a row. Oil is trading near a four-day high in New York. Commodities rose to a four-week high after Fed chairman Bernanke indicated he may provide more economic stimulus.

European shares rose on Wednesday after falling in the previous three days.

FIIs were net buyers of Rs 3.16bn in the cash segment on Wednesday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net sellers at Rs 3.68bn on the same day. In the F&O segment, the foreign funds were net buyers at Rs 2.69bn.

The foreign funds were net sellers of Rs 9.17bn in the cash segment on Tuesday, according to SEBI data. Mutual Funds were net sellers at Rs 441mn on the same day.

Singapore’s economy shrank in the April to June period, as manufacturing output fell, sending the island’s currency down. Separately, the Bank of Korea has kept its key policy rate unchanged at 3.25%.

US retail sales, PPI, business inventories, Ben Bernanke's testimony and initial jobless claims will be on the investors' radar today. European banks’ stress-test results are due on July 15.