Pit stop on the Street!

This is not the finish line. This is just the intermediate pit stop. ~ Tom Duxbury.

Just before the first Indian grand prix, the markets had the exhilarating experience of revving engines and screeching tyres as the Nifty raced ahead close to the 5400 mark. Now, it looks like the world stocks are taking a breather. US equity benchmarks had a flat finish on Friday while their European counterparts ended mixed. Italian shares slid after a tepid auction pushed yields on Italian 10-year bonds back above 6%.



Asian markets are mixed this morning while the Nifty futures trading in Singapore are pointing to a muted start. Japanese shares are up slightly while the yen is down after the government stepped in to check the currency’s advance.

The Indian indices may consolidate after the Nifty nearly hit the 5,400 mark last week. Although the Nifty could gradually rise to 5,600, it is likely to face resistance around 5450.

Corporate earnings will continue to attract attention in the next couple of weeks.

Meanwhile, Wipro has reported consolidated net profit of Rs 13bn for the July to September quarter. Consolidated revenues for the period stood at Rs 90.94bn while IT Services Revenue for Q2 FY12 were at US$1.47bn, up 4.6% Quarter on Quarter. Q2 IT EBIT Margin stood at 20%. Wipro sees Q3 FY12 IT Services Revenues at US$1.5-1.53bn.

Key domestic data points to watch out for in the near-term include auto sales, cement volumes, manufacturing & services PMIs, IIP and inflation.

Globally, investors will have to contend with manufacturing & services PMIs, FOMC meet, G-20 summit and US monthly jobs report.

FIIs were net buyers of Rs 21.66bn (provisional) in the cash segment on Friday, according to NSE data. The domestic institutional institutions (DIIs) were net sellers at Rs 10.78n on the same day.

The foreign funds were net buyers of Rs 32.51bn in the F&O segment on Friday, as per provisional NSE data.

FIIs were net buyers at Rs 4.54bn in the cash segment on Tuesday as well as Wednesday, according to SEBI web site. Mutual funds were net sellers of Rs 899mn on the same day.

Key Results Today: 3M India, Alok Industries, BILT, Bata India, Birla Corp, BOB, BPCL, Canara Bank, Castrol India, Century Textiles, Colgate, Corporation Bank, Dabur India, Dena Bank, EIH, Gillette India, Gulf Oil, Havells India, HUL, ICICI Bank, Indian Bank, IPCA Labs, J&K Bank, Karnataka Bank, LMW, NMDC, Novartis India, OBC, Punjab & Sind Bank, Subex, UCO Bank, UB Holding, UB, Vijaya Bank and Wipro.

Global Events Today: EU CPI, EU unemployment rate, Canada's GDP and US Chicago PMI.