Kindly Adjust

The art of life lies in a constant readjustment to our surroundings. - Okakura Kakuzo
The market seems to be in no mood to adjust to investor’s expectations. Just when some semblance seems to have been restored on Tuesday, some dumping of stocks, reportedly ‘basket selling’ took the sheen of the indices and send them tumbling.
Expect a flat start and subdued action for the first half of the day. No domestic trigger seems strong enough to guide the market for now. As we remain at the mercy of the global indices, keep a close eye on your portfolio rather than swaying to the overall beat.

Asian markets are flat to negative. The stronger yen seems to be pulling Japanese exporters. The dollar lost against most currencies falling 0.1% against the yen. The euro rose 0.1% against the dollar and the rupee closed stronger at 46.95 against the dollar.
The Dow Jones added 123 points while the Nasdaq wiped out its gains and closed marginally lower. Concerns continue on the European crisis. Fitch said that "following an unprecedented economic and financial shock, the scale of (Britain's) ... fiscal challenge is formidable and warrants a strong medium term consolidation strategy -- including a faster pace of deficit reduction than set out" in April by the previous Labour government. "
The Bank of England is set to keep its key interest rate at a record-low 0.50% on Thursday. Reports state that BoE will stay away from any quantitative easing policy.
British Prime Minister David Cameron had said ‘the state of Britain's finances was even worse than we thought’ and warned of "painful" and unavoidable cuts to tackle the record deficit.
Meanwhile, the IMF has said that risks to the global economic outlook have "risen significantly" and policy makers have limited room to provide support to growth.
Most advanced economies are experiencing a "subdued" recovery, International Monetary Fund Deputy Managing Director Naoyuki Shinohara said.
Gold prices hit an all-time high of Rs 19,140/10 grams on Tuesday.
On the weather front, the monsoon is set to further advance over some parts of Konkan, Goa, Madhya Maharashtra, Karnataka and Andhra Pradesh during the next three days, an India Meteorological Department (IMD) update stated.
The direction of the euro tends to be taken as a proxy for worries about the European debt crisis and its impact on the global economy
The Indian markets ended in the red on Tuesday extending losing streak to second straight trading session. Markets opened on a flat note and stayed in a narrow range for the first half of the day. However, markets fell sharply in the second half amid doubts over the sustainability of the global recovery after credit ratings agency Fitch warned that United Kingdom faces a "formidable" fiscal challenge.
The Realty, Banking, Oil & Gas and the Metal stocks were heavily pounded Even the second rung stocks were under pressure. "While, the equity markets ended in deep red for second day, spot gold was seen hitting a high of US$1,252 a troy ounce on safe haven buying", says Amar Ambani Vice President Research IIFL.
Coming back to domestic developments, the much awaited Empowered Group of Ministers on petroleum pricing was deferred, in other words, the government failed to reach a decision of freeing auto fuel prices from government control. However, stocks like HPCL, BPCL and IOC ended with gains after media reports stated that the EGOM would meet on in the coming days.
Finally, the BSE 30-share Sensex fell 167 points at 16,617 and NSE Nifty lost 47 points at 4,987.
Markets in Asia ended marginally in the green; the Nikkei in Japan edged higher by 0.2%, Australia's S&P/ASX gained 1.3% while the Hang Seng index in Hong Kong was up 0.6% and Shanghai index in China ended flat.
European indices however were trading in the negative terrain, the DAX in Germany was down 1%, the CAC 40 index in France was down 1% and the FTSE in the UK was down 1%.
Barring the BSE FMCG index all the other BSE sectoral indices ended in the negative terrain. Among the major losers were, BSE Realty index, it fell 2.5%, followed by BSE Metal index down 2.1% and BSE Oil & Gas index down 1.4%. Even the BSE Mid-Cap index and the BSE Small-Cap index fell by 0.4% each.
Outside the frontline indices, the big losers in the broader market were REI Agro, GTL Infra, KSK Energy and Essar Oil. On the other hand, gainers included M&M Fin, P&G, Hindustan Copper, GMDC and Thermax.