Daily Mkt Strategy

The bulls remain on the dance floor more due to the positive global markets. However, the fact remains that the a number of discouraging economic reports were released even as the Dow and Nasdaq closed in the green.
Spiking wholesale inflation, weakening consumer confidence and more problems for the housing market had the US indices in trouble earlier. However sentiment improved after IBM announced it would buy back $15 billion in shares.
The populist railway budget more or less indicates that the upcoming Union budget will be more or less people-friendly, keeping in mind the elections. Railway Minister Lalu Prasad Yadav announced that the Railways is expected to post a record cash surplus. Read complete Railway Budget coverage on India Infoline. Click here.
The outlook for the day remains positive. Depending on how global markets behave, our indices too will more or less swing similarly. With F&O expiry just a day away, choppiness could set in.
Asian stocks rose for a third day. Japan's Nikkei 225 Stock Average added 1.5% to 14,030 and may end at a 6-week high.
The Ambani brothers continue with their announcements. While RIL has struck gas in the NEC-Mahanadi offshore basin, off the Orissa coast in Bay of Bengal, REL has announced buy back of shares.
Meanwhile, Cairn India has entered in the race for two oil blocks in Sri Lanka, says a report.
Like we mentioned, tea stocks were up 5 to 20%. Steel stocks too were in the limelight.
Wipro could be in action as it reportedly plans to tie up with Japanese firms and may consider M&A.
Moser Baer looks set to foray into long distance telephony segment. Reports say France Telecom-owned Orange Business Services has finalised a joint venture partnership with Moser Baer Ltd.
The FIIs turned net buyers of Rs646cr. in Index Future and by Rs325cr in index options and by Rs.226 in Single Stock Future. In the Cash segment FIIs were net sellers by Rs32 cr and DIIs were net buyers of Rs511.33cr.
In the global markets, investors will pay close attention to what Federal Reserve Chairman Ben Bernanke says as he appears before the House Financial Services and Senate Bank committees to discuss monitory policy and the present state of the economy. Expectations are that Bernanke will indicate the U.S. central bank is prepared to keep lowering interest rates. The dollar fell to a record low of $1.50 per euro. Crude oil for April delivery rose to as high as $101.43 a barrel on the New York Mercantile Exchange yesterday, and was recently at $101.21.
In other media reports:
DOT is likely to issue spectrum licenses to new entrants from today Gayatri Projects Ltd to float a 100% subsidiary to implement build operate transfer projects. The government will extend the sugar export sops till October 1 against its earlier decision to extend it by one year to April 19,2009.