Frantic Friday

"Life is mostly froth and bubble, Two things stand like stone, Kindness in another's trouble, Courage in your own" - Adam Lindsay Gordon The froth seems to be coming off now. Crude oil has plunged and so has safe haven gold. US dollar appears to be the king right now. Despite a bailout for Spanish banks and a favourable Greek election, uncertainties abound about the Eurozone debt crisis. The troublesome Europe has gradually taken toll on US and China, two largest economies of the world. Markets are clamouring for fresh round of stimulus from the central banks. Central banks like the ECB and the RBI are reluctant to act, putting the onus of reviving growth on the government instead. The Fed too has resisted calls for a QE3 so far. So, it remains to be seen who blinks first in this standoff. Central banks might have to surrender in case things get worse on the macro-economic front. We are looking at a gap-down opening but things could turn around later in the session given the intensity of fall in crude oil. A weak rupee and slow start to the monsoon are the two big worries. Keep an eye on cement and telecom companies. RIL may also remain in the spotlight.