Finding solace

There is nothing so bitter that a patient mind cannot find some solace in it. - Lucius Annaeus Seneca The Indian market seems to be in no hurry to get anywhere. Investors are keeping their fingers crossed ahead of the major earnings and a couple of macro-economic data expected in the coming week. A flat start is what lays in store for the main Indian indices today. A late recovery on Tuesday powered the Nifty to its psychological comfort zone of 6000. The Nifty needs to cement its position above 6000 levels for a couple of trading sessions to exhaust any selling pressure. Fitch Ratings has warned that India still faced the risk of a sovereign credit rating downgrade has said that the upcoming budget will indicate government’s commitment to fiscal consolidation. The government says it is not worried as it is progressing well in its initiatives. Meanwhile, plans to normalise relations with Pakistan could be affected as a group of Pakistan Army soldiers reportedly raided across the Line of Control in Mendhar Sector and killed two Indian soldiers. The global cues are mostly lower. Asian shares are mixed. The US market saw some weakness with the Dow Jones falling 55.44. The Standard & Poor's 500 Index fell 4.74 points while the Nasdaq lost 7.01 points. These indices bounced back from their earlier lows. Nikkei is up and so is Hong Kong's Hang Seng index. South Korea's Kospi index is marginally higher while China's Shanghai index was trading flat. A report says the finance ministry is considering a proposal to sell some shares of ITC, Axis Bank and Larsen & Toubro, held by SUUTI — the restructured unit of the erstwhile UTI — as the government rushes to meet its disinvestment target for the current financial year. Results watch: Gujarat NRE Coke, Indusind Bank, Kitex Garments, Yash Management. Trends in FII flows: The FIIs were net buyers of Rs8.87bn in the cash segment on Tuesday, while the domestic institutional investors (DIIs) were net sellers of Rs10.28bn, as per the provisional figures released by the NSE. The foreign funds were net buyers of Rs7.98bn in the cash segment on Monday, according to the SEBI figures. Global Data Watch: HIA New Home Sales (MoM) (Nov) AUD, BRC Shop Price Index (MoM) (Dec) GBP, Retail Sales s.a. (MoM) (Nov) AUD, Public Deficit/GDP (Q3) EUR, Goods Trade Balance (Nov) GBP, Total Trade Balance (Nov) GBP, Trade Balance; non-EU (Nov) GBP, Gross Domestic Product s.a. (QoQ) (Q4) EUR, Industrial Production (YoY) (Nov) EUR, Global Trade Balance (Nov) EUR, Industrial Production s.a. w.d.a. (YoY) (Nov) EUR, Industrial Production s.a. (MoM) (Nov) EUR, MBA Mortgage Applications (Jan 4) USD, Housing Starts s.a (YoY) (Dec) CAD, EIA Crude Oil Stocks change (Dec 29) USD, 10-Year Note Auction USD, Trade Balance (MoM) (Nov) NZD, Exports (Nov) NZD, Imports (Nov) NZD, Trade Balance (YoY) (Nov) NZD, Foreign bond investment (Jan 4) JPY, Foreign investment in Japan stocks (Jan 4) JPY. In other news in the media: Reliance Industries has applied to the government to de-notify over 40% of its SEZ in Gujarat as it plans Rs450bn projects in that area to cater to the domestic market. (ET) Wockhardt said it has received final approval from the US health regulator to market generic Lamotrigine tablets — used for treatment of epilepsy — in America. (ET) In a fresh setback to cash-starved media house Deccan Chronicle Holdings, Kotak Mahindra Bank, one of its lenders, has taken ‘symbolic possession’ of its printing press located in Kondapur in Hyderabad. (ET) Bhushan Steel is planning to raise Rs4.75bn through a rights issue, which will be launched in the third week of this month. (ET) Maruti Suzuki continued to lose ground in 2012 when its market share slipped to a new low because of factors including declining sales of entry-level petrol cars, increasing competition and, mostly, labour trouble at its Manesar plants. (ET) Bharti Airtel has increased 2G data rates late last week, and its closest rivals, Vodafone and Idea Cellular, are expected to do the same as cash-strapped telcos are pulling out all the stops to cover costs and improve margins. (ET) Tata Steel plans to raise Rs15bn at 9.5% through bond sale as it aims to capitalize on the easing interest rates. (ET) Swelect Energy Systems is set to invest Rs220mn in HHV Solar Technologies Pvt Ltd Bangalore for a 49% stake. (BL) Pune-based preventive healthcare firm Indus Health has entered the southern market by tying up with Apollo Hospitals to set up its 55th centre in Hyderabad. (BL) GVK Power & Infrastructure Ltd, which had secured a mandate to execute the Shivpuri-Dewas highway project in Madhya Pradesh, may also step aside from executing the project due to delays in execution beyond its control. (BL) Biocon announced that it has received marketing authorization from the Drugs Controller General of India for its novel biologic Itolizumab, anti CD6 molecule, for the treatment of chronic plaque psoriasis. (BS) Hyderabad metro rail concessionaire L&T Metro Rail Hyderabad Limited said it had raised Rs5bn short-term loan from YES Bank, outside the consortium of lenders that has pledged close to Rs120bn loan to the ongoing project. (BS) Manganese Ore India Ltd will invest Rs12bn in a phased manner to increase production to over 2mn tonne by 2020, a top official said. (BS) The Department of Telecom has filed an affidavit in the Supreme Court to allow operators, whose licences have been quashed, to continue services till the next round of auction. (BL) The shipping ministry will award 25 projects worth Rs110bn by the end of the current fiscal, a move that is expected to increase cargo-handling capacity at ports by 250mn tonne. (ET) The government has decided to introduce the Insurance Laws (Amendment) Bill 2008 in the upcoming budget session of Parliament in its present form which allows 49% foreign investment in the insurance sector, without a carve out for portfolio investors. (ET)