There are two ways of exerting one's strength: one is pushing down, the other is pulling up – BT Washington.
The bulls and bears seem to be pushing and pulling each other but in a narrow range. The Indian market failed to capitalize on a bright start to August as results proved to be less inspiring and worries mounted over a faltering US recovery. Friday’s much-awaited US jobs report have only added to the external risks. But, the fact that Wall Street did not suffer too much damage could help the bulls stage a recovery. Asian markets too seem to have taken the US jobs data in stride. Most of them are flat to slightly positive. So, the start will be a little sluggish but the finish might be better, provided world equities cooperate.
Apart from the global risks, sentiment is also getting affected by unfavourable risk-reward ratio and ‘rich’ valuations. Still, FII inflows remain fairly strong and will continue to support the market in case of a correction. The latest IIP data will be out on Thursday. Before that Tuesday’s Fed meet, coupled with a whole host of data from China and Europe may grab markets’ attention.
Results Today: BF Utilities, Britannia, Diamond Power, Electrosteel Castings, Finolex Cables, Gayatri Projects, Goodyear India, Harrisons Malayalam, Jain Irrigation, Monnet Ispat, Opto Circuits, Reliance Capital, SREI Infra, Time Technoplast and Tulip Telecom.
FIIs were net buyers of Rs6.64bn in the cash segment on Friday (provisionally), according to the NSE web site. Local funds were net sellers of Rs3.4bn. In the F&O segment, they were net sellers at Rs3.12bn. Foreign funds were net buyers of Rs1.67bn in the cash segment on Thursday, according to SEBI's web site. Mutual Funds were net sellers at Rs1.86bn on the same day.
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