Easing, not quantitative!

You can use all the quantitative data you can get, but you still have to distrust it and use your own intelligence and judgment

- Alvin Toffler

After a flurry of gains, we are set to see some easing on the Street. Not the quantitative kind from central banks. Big Ben (Bernanke) refused to play ball with the markets on another round of quantitative easing (QE). Markets are already showing their displeasure over the Federal Reserve chairman’s ‘disappointing’ remarks. Asian indices are mostly lower. The Indian market is set to mimic them at open with some selling coming in.

US markets closed off session highs as Bernanke’s comments tempered hopes of a fresh monetary stimulus. European benchmarks also pulled back from their best intraday levels, notwithstanding China’s rate cut move and encouraging Spanish debt auction.

Back home, the Government continues to dither over key reforms, with the Cabinet not taking up the pension bill. A leading global airport operator has announced its exit from India and power cuts remain rampant due to soaring demand.

Globally, Fitch has downgraded Spain by three notches and has warned the US of a similar treatment. In short, it is time to step back after the advance we saw earlier this week.

ADR/GDR
	Latest (US$)	Price % chg	% Prem/Disc
Dr. Reddys	29.2	0.6	(0.7)
HDFC Bk	30.7	3.3	4.6
ICICI Bk	30.1	0.1	(0.3)
ITC	4.3	1.6	0.1
Infosys	43.9	(2.4)	(1.7)
Ranbaxy	8.9	(0.2)	0.5
Reliance	26.4	3.0	0.5
Wipro	8.9	(1.2)	22.6
SBI	78.6	1.3	(0.5)
Tata Motors	21.5	(0.6)	0.1
Sterlite	7.0	0.1	(0.8)
L&T	23.2	3.4	(0.0)

Indian market		% change
	Last close	1 day	3 mth	YTD
Sensex	16,649	1.2	(2.9)	7.7
Nifty	5,050	3.8	(3.3)	9.2
BSE 100	2,046	1.0	(3.7)	10.6
BSE 200	6,407	1.0	(3.7)	10.9
CNX Midcap	7,005	3.0	(6.2)	14.6
BSE Smallcap	6,314	0.5	(5.2)	13.8
Developed market		% change
	Last close	1 day	3 mth	YTD
Dow Jones	12,461	0.4	(3.5)	2.0
Nasdaq	2,831	(0.5)	(4.7)	8.7
S&P 500	1,315	(0.0)	(3.7)	4.6
FTSE	5,448	1.2	(7.0)	(2.2)
CAC	3,071	0.4	(11.7)	(2.8)
DAX	6,144	0.8	(10.1)	4.2
Hang Seng*	18,516	(0.9)	(11.4)	0.4
Nikkei*	8,476	(1.9)	(13.2)	0.2
S&P/ASX200*	4,062	(1.1)	(2.6)	0.1
* Markets are open
Emerging market		% change
	Last close	1 day	3 mth	YTD
Shanghai Comp	2,288	(0.2)	(5.5)	4.0
Brazil Bovespa	54,156	3.2	(18.0)	(4.6)
Mexico Bolsa	37,247	(0.1)	(1.5)	0.5
Kospi*	1,838	(0.5)	(8.1)	0.7
Micex	1,336	1.8	(15.0)	(4.7)
Taiwan*	7,019	(0.9)	(12.1)	(0.7)
Straits*	2,744	(0.6)	(7.6)	3.7
* Markets are open
Institutional activity
(Rs cr)	Cash	F&O	MTD	YTD
FIIs	169	2,055	(1,173)	40,774
MFs	92	-	817	(5,537)
FIIs Prov.	675
MFs Prov.	(34)
Commodities		% change
	Last close	1 day	3 mth	YTD
Crude (US$/bbl)	82.8	(2.4)	(22.4)	(16.3)
Gold (US$/oz)	1,567	(1.4)	(7.8)	0.2
Copper (US$/mt)	7,488	1.1	(9.7)	(1.3)
Aluminium (US$/mt)	1,956	0.8	(9.7)	(2.0)
Zinc (US$/mt)	1,903	1.7	(4.5)	4.2
Advance/Decline stocks
(Nos)	A	B	S	Total
Adv	137	1,092	298	1,527
Dec	62	847	263	1,172
Unch	3	87	35	125
A/D ratio (x)*	2.2	1.3	1.1	1.3
*A/D excluding Unch
Trade value
(Rs cr)			% chg
Cash NSE	10,686		(8.5)
Cash BSE	2,112		5.1
Total Cash	12,798		(6.5)
Delivery (%)	37.9		-
Derivatives	90,505		(16.9)
Currency		% change
	Last close	1 day	3 mth	YTD
Rs/US$	54.95	(0.8)	(8.5)	(3.4)
Rs/EUR	69.15	(0.2)	(4.5)	(0.6)
US$/GBP	1.55	(0.3)	(2.2)	(0.4)
US$/EUR	1.25	(0.4)	(5.7)	(3.4)
Yen/US$	79.43	(0.3)	2.7	(3.2)
Bond market
	Last Close (%)		Bps chg
10yr Gsec	8.35		(0.00)
Call rate	8.20		0.05