Modest moments

The undertone is cautious yet a tad optimistic as investors examine corporate results and await announcements on pending reforms. FII flows have stayed positive this month. Be modest! It is the kind of pride least likely to offend. - Jules Renard. Indian markets have managed to rise modestly in the past three sessions amid a drop in volatility. The undertone is cautious yet a tad optimistic as investors examine corporate results and await announcements on pending reforms. FII flows have stayed positive this month. Monsoon deficit, sticky inflation and high twin deficits are among the negatives. The opening is likely to be slightly tepid as Asian markets are mixed this morning. US stocks ended higher in a choppy session on Thursday as investors focused on corporate earnings. The advance came despite a rash of disappointing economic reports. European markets also gained after Germany’s parliament approved emergency aid for ailing Spanish banks and a few corporate results came in ahead of estimates. The eurozone finance ministers are likely to approve the same today. Global equities have also held their own as central banks swing into action to boost growth. Corporate earnings season is also underway in markets like the US and Europe. Meanwhile, the Cabinet has approved 21% import duty on power equipment, demerger of VSNL land and disinvestment in SAIL. It may take up FDI in aviation soon. The Centre is also working on building consensus on FDI in multi-brand retail. The monsoon session of parliament begins on August 8. Maruti will remain in the spotlight after fresh labour unrest at Manesar. Reliance Industries will announce its Q1 results. The numbers are likely to be muted. Other top companies announcing their earnings include the likes of Asian Paints, Crompton Greaves, Hindustan Zinc, UltraTech Cement and Zee Entertainment. Spain’s parliament has cleared new austerity measures. Meanwhile, Slovenia could well be the sixth eurozone country to receive a bailout to shore up its troubled banks. The price of iron ore has dropped to its lowest level in more than eight months as weak sentiment and ample inventories hurt demand from Chinese steel makers. Main Results Today: Aptech, Asian Paints, Binani Industries, Crompton Greaves, Hindustan Zinc, HSIL, HT Media, Indiabulls Financial, JSW Energy, Kalindi Rail, Karnataka Bank, Praj Industries, Reliance Industries, Supreme Industries, Ultratech Cement, United Phosphorus and Zee Entertainment. Trend in FII flows: The FIIs were net buyers of Rs. 1.25bn in the cash segment on Thursday while the domestic institutional investors (DIIs) were net sellers of Rs. 2.28bn, as per the provisional figures released by the NSE. The FIIs were net sellers at Rs. 2.40bn in the F&O segment on Thursday, according to the provisional NSE data. The foreign funds were net buyers of Rs. 3.77bn in the cash segment on Wednesday while the Mutual Funds were net buyers at Rs. 200mn, according to the SEBI figures. Global Data Watch: Germany's producer price index, European council meeting, Finnish parliament votes on the Spanish bailout, Canada's consumer price index and American Petroleum Institute's monthly report.