Real issues to deal with!

Don't let us make imaginary evils, when you know we have so many real ones to encounter. - Oliver Goldsmith.

The positive buzz appears to have gone quiet after the recent advance on the bourses. Volumes have tapered off lately ahead of the earnings. Europe is still grappling with the sovereign debt issues, despite Greece averting a default. S&P has warned that any rollover of Greek debt will amount to "selective default". Meanwhile, Moody’s has cut Portugal’s credit rating to junk. Even the US is facing a deficit-cum-debt problem. A fierce tug-of-war is underway between the Obama administration and the Republicans.



We seem to be set for another day of consolidation amid light volumes, as investors await Q1 results. Back home, the FM is confident of meeting FY12 fiscal deficit target though analysts are a bit skeptical. Monsoon’s lackluster progress is a cause for concern. Telangana has added to UPA II’s list of worries even as it struggles to cope with a spate of other issues. The start today will be anemic amid indecisive global cues.

The main indices may remain rangebound and sideways in the short-term. A flag formation is visible on the Nifty intraday charts, which suggests that the index may consolidate further for a few days before signaling a breakout on the higher side. However, any close below 5600 could negate the intermediate upswing.

The ECB’s policy meet and US jobs data are the key global events to keep track over the next few days.

FIIs were net buyers of Rs 8.25bn in the cash segment on Tuesday, according to the provisional NSE data. The domestic institutional institutions (DIIs) were net sellers at Rs 8.98bn on the same day. In the F&O segment, the foreign funds were net sellers at Rs 5.73bn.

The foreign funds were net buyers of Rs 11.85bn in the cash segment on Monday, according to SEBI data. Mutual Funds were net buyers at Rs 1.12bn on the same day.

Mukesh Ambani is reportedly looking to sell Reliance Gas Transportation Infrastructure Ltd. (RGTIL), which is into building pipelines to carry natural gas from the eastern offshore block.

Idea Cellular has received a breather from a hefty fine after a telecom tribunal restrained the DoT from imposing penalty on the Aditya Birla Group firm. The TDSAT has restrained the DoT from collecting a Rs 2.5bn fine from Idea Cellular.

Saregama India has purchased a 10% stake in Timbre Media Pvt Ltd, a company set up by ex-Worldspace Satellite Radio employees.

Container Corporation of India (Concor) has tied up with Krishnapatnam Port Company for developing rail infrastructure at the port terminal, which will commence operations in a month's time.

PVR has bought out JP Morgan Mauritius Holdings and India Advantage Fund from a group firm, PVR Pictures for an undisclosed amount.

The Empowered Group of Ministers (EGoM) is meeting on July 11 to consider the crucial Food Security Bill and allowing export of foodgrains.

Banks, which have investments in liquid or short-term debt schemes of mutual funds in excess of 10%, could comply with the new RBI rule at the earliest but not later than six months from July 5, 2011.

This means by December, banks will have to pull out nearly Rs 1 lakh crore from debt schemes of mutual funds. Earlier, the RBI had put the deadline of October.