Pre Open Thoughts: Fear & Hope

Pre Open Thoughts: Fear & Hope

Ø Fear cannot be without hope nor hope without fear. The start today looks bad, partly due to fears on inflation and partly owing to weak global cues as world markets are still nervous as Asian markets are mostly lower while European stocks too finished in the red. US equity indices slumped in late trade.

Ø Spain data shows that Spanish banks held more problem loans than expected. Reports state that Spain is issuing as much as 2.5 billion euros in two- and 10-year bonds, while France has set a maximum target of 11 billion euros for securities including 2017 notes and 2018 inflation-linked debt. Europe urgently needs to bolster its fragile safety net as highly indebted euro zone nations struggle to implement fiscal austerity measures.

Ø Back home expect volatility to increase in coming days on account of F&O expiry. The Nifty has to stay above 5300 with positive breadth and strong volumes to signal an intermediate upswing. But, given the confluence of local and global headwinds, skepticism has more takers for the time being.

Ø There is some good news on fund flows that FIIs were net buyers of Rs. 2.21bn in the cash segment on Wednesday while the domestic institutional investors (DIIs) were net buyers of Rs. 378.8mn, as per the provisional figures released by the NSE.

Ø Ambuja Cements will be in focus as it announces its Jan-March quarter earnings today.

Ø Separately reports also suggest that fuel prices will rise by a few rupees more.

Results Today:

ACC, Ambuja Cements , Hindustan Zinc, IndusInd Bank.

Global Data Watch today:

US Initial Jobless Claims (14) and Continuing Jobless Claims (Apr 7), Existing Home Sales (MoM) (Mar), Existing Home Sales Change (Mar), Leading Indicators (MoM) (Mar), Philadelphia Fed Manufacturing Survey (Apr), EU Consumer Confidence (Mar), National Australia Bank's Business Confidence (Q1), Tertiary Industry Index (MoM) (Feb).