Stubborn behaviour

"Many are stubborn in pursuit of the path they have chosen, few in pursuit of the goal." - Friedrich Nietzsche. The market is treading along with no clear goal in sight. While, the GAAR deferment saved the day on Monday, eurozone worries caused a tumble on Tuesday. Weakness persisted on Wednesday and the volatile Nifty closed below 5000 again. Greece and Spain continue to be major source of fear. Efforts to form a government in debt-plagued Greece have failed. Spanish shares plunged amid growing talk that troubled lender Bankia SA will be nationalised. Spanish bond yields crossed 6% again. In the US, the Dow is experiencing its worst losing streak since August 2011. Oil and gold futures extended losses while the dollar was firm. Large markets in Europe escaped steeper losses and Asian indices are mixed. We see a slightly positive opening but market players are likely to remain skittish amid persistent FII selling and weakness in the rupee. Watch out for the IIP data on Friday. Result-oriented action is likely to continue. Global markets may continue to be driven by eurozone problems in the near term. Fresh batch of Chinese data will also be followed closely along with Fed chief Ben Bernanke’s latest speech. Key Results Today: Apollo Tyres, Cadila Healthcare, Canara Bank, Cipla, Dewan Housing Finance, Escorts, HEG, Jain Irrigation, Jubilant Foodworks, Lupin, Navneet Publications, NELCO, NTPC and Sintex Industries. Trend in FII flows: The FIIs were net sellers of ~Rs 3.76bn in the cash segment on Wednesday while the domestic institutional investors (DIIs) were net buyers of Rs 1.62bn, as per the provisional figures released by the NSE. The FIIs were net buyers of Rs 1.59bn in the F&O segment on Wednesday, according to the provisional NSE data. The foreign funds were net sellers of Rs 3.69bn in the cash segment on Tuesday, according to the SEBI figures. Global Data Watch today: China Trade Balance (Apr), Australia Unemployment Rate (Apr), Germany Wholesale Price Index (Apr), Japan current account and trade balance (Mar), EU ECB Monthly Report, UK Industrial Production (Mar), UK Manufacturing Production (Mar), UK Trade Balance (Mar), BOE Interest Rate Decision, US Initial Jobless Claims, US Trade Balance (Mar), US Import Price Index (Apr), US Fed’s Bernanke speech, US Monthly Budget Statement (Apr) and US Fed Minneapolis’s Narayana Kocherlakota speech.