Positive tempo seen

"If you always do what you always did, you'll always get what you always got." – Anonymous. Nothing really changed over the weekend as the key Indian stock indices logged modest gains in low volume, lackluster trade on Saturday.However, they might just maintain the positive tempo seen in recent days at start today. The upbeat undercurrent is largely due to healthy global markets.The ECB’s monetary stimulus appears to have calmed unnerved investors for the time being. The latest IIP data (Sept. 12) and WPI inflation report (Sept. 14) will have some bearing on Indian markets as well amid lingering worries over the policy paralysis that has gripped the nation. The German constitutional court’s verdict on the legitimacy of the European Stability Mechanism (ESM) will be keenly watched. The initial euphoria over the ECB’s bond-buying plan could fade if the German court delivers an unfavourable verdict. Expectations have also been going up on the US Federal Reserve unleashing another round of quantitative easing (QE). The August data shows that recovery in the US jobs market remains painfully slow. The weak jobs report may force Fed Chairman Ben Bernanke's hand on monetary easing at a two-day FOMC meeting. Indian markets came back with a sharp rebound on Friday after the stimulus measures announced by the ECB. A weekly close above 5350 levels on the Nifty has added more ammunition to the current positive momentum with rising gap near 5280 turning out as a major pivot level. Trend in FII flows: The FIIs were net buyers of Rs 5.02bn in the cash segment on Friday while the domestic institutional investors (DIIs) were net buyers of Rs 2.18bn, as per the provisional figures released by the NSE. The FIIs were net buyers of Rs 194mn on Saturday while the DIIs were net sellers of Rs 75.4mn, as per the provisional figures released by the NSE. The foreign funds were net buyers of Rs 1.36bn in the cash segment on Thursday, according to the SEBI figures. Global Data Watch today: Japan Q2 GDP data, China M2 Money Supply (Aug), China Imports and Exports (Aug), China Trade Balance (Aug), Australia Home Loans (Jul), Australia Investment Lending for Homes (Jul), Japan Eco Watchers Survey - Outlook (Aug), Japan Consumer Confidence Index (Aug), France Industrial Output (Jul), Italy GDP (Q2), EU Sentix Investor Confidence (Sep), Greece Consumer Price Index - Harmonized (Aug), Greece Consumer Price Index (Aug), Greece Industrial Production (Jul), Portugal Trade Balance (Jul), US Consumer Credit Change (Jul). Important Global News: Japan trimmed its Q2 GDP on Monday, although separate data showed that the nation's current-account surplus widening despite a trade deficit. China’s consumer-price inflation in August accelerated from July, media reports said on Sunday. China’s industrial output grew at the slowest pace in three years and President Hu Jintao said that the economy faces "notable downward pressure," signaling that more economic stimulus may follow approvals for subway and road projects. Meanwhile, South Korea has unveiled a US$5.23 billion stimulus plan. German Chancellor Angela Merkel is reportedly willing to provide Greece with some more flexibility to ensure that the country stays in the euro zone. A general election will be held in the Netherlands on Wednesday. Parliament was dissolved in April after crisis talks on passing a budget failed, leading to the collapse of the coalition government. On the same day, José Manuel Barroso, president of the European Commission, will deliver the State of the Union address at the European parliament in Strasbourg. The European Commission will present proposals in Brussels for a single banking supervision mechanism in the eurozone, including a new supervisory role for the European Central Bank.