Just a drizzle!

It is not easy to find happiness in ourselves, and it is not possible to find it elsewhere. - Agnes Repplier. While the slight drizzle may bring some relief from searing heat and raise hopes of a good monsoon, the gray clouds are depriving many of a rare celestial spectacle – a once-in-a-lifetime experience of Venus crossing the Sun's face. Then there is also going to be a unnoticeable change in the way we access the World Wide Web with IP addresses now depleted. And all this happens amid persistent worries over the eurozone debt crisis and global downturn. We have seen some revival in risk appetite in the last couple of days. However, the same may not be sustainable in the face of a spate of macro-economic headwinds - domestic as well as overseas. The opening is likely to be positive, thanks to encouraging global cues. The main worry is that FII flows have not turned around. In fact, reports suggest some of them have switched to offshore alternatives to trade in Indian equities due to GAAR. All eyes are on monsoon. Another normal rainy season is crucial for India, which is battling a global slowdown and policy inaction. Telecom stocks will be in focus post the EGoM meet on 2G auction. The ECB will hold its policy meeting today while Ben Bernanke will testify before the Congress on Thursday. Conjecture about a possible repo rate cut by the RBI on June 18 has driven the sentiment in the past 2-3 sessions. But, it is still in the realm of speculation, as sticky inflation, weak rupee and widening twin deficits may prevent the RBI from easing. Watch out for the latest current account deficit numbers later this month. Before that, markets will react to the latest IIP data and inflation numbers. Greece election on June 17 is the most critical event of this month for the world markets. The end-of-the-month G-20 summit and FOMC policy meeting will also have a bearing on sentiment. Trend in FII flows: The FIIs were net sellers of Rs.6.80bn in the cash segment on Tuesday while the domestic institutional investors (DIIs) were net buyers of Rs.7.94bn, as per the provisional figures released by the NSE. The FIIs were net buyers of Rs 9.36bn in the F&O segment on Monday, according to the provisional NSE data. The foreign funds were net sellers of Rs 5.74bn in the cash segment on Tuesday and Mutual Funds were net buyers of Rs 865mn, according to the SEBI figures. Global Data Watch today: Australia GDP (Q1), UK Halifax House Prices (May), UK PMI Construction (May), EU GDP (Q1), Germany Industrial Production (Apr), ECB Interest Rate Decision, US Fed’s Lockhart Speech, ECB President Draghi’s Press Conference, US Nonfarm Productivity (Q1), US Unit Labor Costs (Q1), US Fed’s Beige Book and US Fed’s William Dudley Speech. Spanish Treasury Minister Cristobal Montoro on Tuesday said that given current borrowing costs, financial markets had effectively shut out the country. Montoro also said Spanish banks don't need "excessive" amounts to recapitalize, and also ruled out a full rescue for Spain. The economic crisis in Spain has created a glut of unsold properties, causing a sharp drop in home prices. Meanwhile, Moody's has cut the ratings of some German banks. ECB President Mario Draghi wants European leaders to fix political problems before taking any action. Draghi remains unlikely just yet to come to the rescue of the eurozone. Finance ministers and central bankers from the Group of Seven (G-7) nations have reportedly agreed to cooperate in order to deal with problems in Spain and Greece. But G-7 officials didn't discuss the possibility of a Greek exit from the euro. In a rare positive news, the Australian economy grew almost at double the pace of what economists had expected, sending the Australian dollar higher one day after an interest-rate cut.