Turning combative

Conflict is inevitable, but combat is optional. - Max Lucade. Amid all the external and internal conflicts, our usually soft-spoken and mild-mannered PM has turned combative. Dr. Manmohan Singh has thrown the gauntlet at Team Anna to prove his guilt in the controversy over the allocation of coal blocks. The PM says he is ready to pull the plug on his political career if proven wrong. Another report shows UPA II may not be able to take any further bold measures in light of the stiff political resistance from all sides. The economic environment remains challenging in India; sales of AC makers and lifestyle retailers have turned weak. At the same time, inflation is unlikely to soften materially as can be gauged from reports of yet another price hike by few car makers. The Indian markets will take a cue from Q4 GDP data due on Friday. But, before that we have to contend with the F&O expiry on Thursday and plenty of results. The opening today will be lower due to weak global cues. Asian indices are mostly down on mounting worries about the Spanish banking sector. US stocks played catch-up with other markets after an extended weekend. European markets managed to advance but Spanish stocks got pummeled again. The euro slid below $1.25, reflecting continued concerns about the debt-stricken region. The Hang Seng has slumped after a media report tempered expectations for a strong stimulus from China. The Nifty opened above 5000 levels on Tuesday but profit booking in afternoon pulled it down. The Nifty is hovering in a tight band of 4950-5050, and hence one needs to adopt a neutral stance unless there is a confirmation of a breakout on either side. The EU officials will unveil a report card on the members’ fiscal health today. A survey shows that while several EU nations are questioning the merits of tighter integration, few are willing to dump the euro as a common currency. Interestingly, Greeks are among the keenest to keep the euro. Look out for data on manufacturing PMI from Australia to USA due out on Friday. World markets will also closely track the US monthly jobs report, also scheduled for Friday and US Q1 GDP data. Key Results Today: Aban Offshore, Anant Raj Industries, BEML, BPL, Colgate Palmolive, Dhanlaxmi Bank, DLF, Essar Ports, Financial Technologies, GAIL, GHCL, Godrej Industries, Gujarat Industries, Gujarat Narmada Valley Fertilizers Company, Gujarat State Fertilizers & Chemicals, Gulf Oil Corp, Havells India, HDIL, Himachal Futuristic Communications, Hind Aluminium, Hind Rectifiers, JP Associates, Jay Shree Tea, Jindal Saw, Kingfisher Airlines, M&M, NESCO, Nirlon, Omaxe, Parsvnath Developers, Pipavav Defence, Prime Focus, PTC India, PVP Ventures, Radico Khaitan, Rajesh Exports, Rashtriya Chemicals & Fertilizers, REI Agro, Sanghvi Movers, SpiceJet, Tata Chemicals, TBZ, United Breweries. Trend in FII flows: The FIIs were net buyers of Rs 905mn in the cash segment on Tuesday while the domestic institutional investors (DIIs) were net sellers of Rs 1.99bn, as per the provisional figures released by the NSE. The FIIs were net buyers of Rs 8.92bn in the F&O segment on Tuesday, according to the provisional NSE data. The foreign funds were net buyers of Rs 1.79bn in the cash segment on Monday, according to the SEBI figures. Global Data Watch today: Bank of Japan’s Governor Shirakawa speech, Australia Construction Work Done (Q1), Australia Retail Sales (Apr), EU M3 Money Supply (Apr), UK Consumer Credit (Apr), UK M4 Money Supply (Apr), UK Net Lending to Individuals (May), EU Consumer Confidence (May), EU Economic Confidence (May), EU Industrial Confidence (May), US Pending Home Sales (Apr), US Fed’s William Dudley Speech and UK Gfk Consumer Confidence (May).