Tuesday, January 31, 2012
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.
Higher dollar index takes some shine away
Precious metal prices ended little lower on Monday, 30 January 2012 at Comex. Comex February gold futures prices ended the U.S. day session slightly lower on a mild corrective and profit-taking pressure after prices last Friday hit a seven-week high. The higher U.S. dollar index and weaker crude oil prices also affected prices. Support for the metals came amid tensions in the euro zone.
Gold for April delivery ended lower by $1 or 0.1%, to end at $1,734.4 an ounce on the Comex division of the New York Mercantile Exchange on Monday. It fell to a low of $1,718.8 and rose to a high of $1,742.8 during intra day trading. Last week, gold gained 4.2%. For the year 2011, gold rose 10%.