Don’t give up

It's hard to beat somebody when they don't give up - Babe Ruth.

After Monday’s fizzle, the indices may look at recouping some of their losses. The big question likely to be going through the minds of most market players after Monday’s sharp selloff is: "Was January a flash in the pan?". The answer is a tricky one given the fact that a lot of the headwinds are yet to be conquered. Today’s opening will be a touch better though as Asian markets are showing some resilience. US stocks managed to recover from intraday lows while the European markets closed in the red. Tuesdays have been good in January. So, whether that trend holds up today as well. Results will continue to be examined following nasty surprises like BHEL.

Meanwhile, core sector growth fell in December after a strong November. Watch out for the IIP numbers for the same month. FII flows have been robust but may taper off. Outcome of the state elections and the run up to the Union Budget are going to be crucial.



The eurozone continues to be the source of trepidation. EU leaders have agreed to strengthen the financial firewall against the debt crisis, but Greece is still struggling to clinch a deal with its private creditors on a proposed debt swap. Portugal bond yields hit euro-era records on fears about its financial conditions. Therefore, one has to see how the euro area credit crisis unfolds in the future.

The US is in better shape but Q4 GDP report was a tad disappointing. All eyes will be on Friday’s monthly jobs data. Before that we will get statistics on manufacturing PMI and services PMI from across the globe.

The FIIs were net sellers of Rs 2.01bn in the cash segment on Monday while the domestic institutional investors (DIIs) were net sellers at Rs 5.33bn, as per the provisional figures released by the NSE.

The FIIs were net sellers of Rs 4.22bn in the F&O segment on Monday, according to the provisional NSE data.

The foreign funds were net buyers of Rs 13.64bn in the cash segment on Friday, as per final SEBI data. Mutual Funds were net sellers at Rs 2.81bn on the same day.

Major Results Today: Aban Offshore, BASF India, Central Bank of India, Century Textiles, Crompton Greaves, Dabur India, Delta Corp., FT, Gateway Distriparks, HCL Infosystems, ICICI Bank, IDBI Bank, Ipca Labs, Jagran Prakashan, KEC International, Muthoot Finance, NMDC, PNB, PTC India, Shoppers Stop, Siemens, Subex, TIL, Titan and TVS Motor.

Global Data Watch: Japan industrial production, Japan household spending and Japan unemployment, UK consumer confidence, Australia's business confidence, Germany retail sales, Germany unemployment, eurozone unemployment, Canada GDP, S&P/Case-Shiller Home Price Indices (YoY) (Nov), Chicago Purchasing Managers' Index (Jan) and Consumer Confidence (Jan).