Global headwinds persist, domestic bourses to remain rangebound..

Globally, The US markets closed flat in another lacklustre session, following a pair of mixed economic reports and ahead of Fed chairman Ben Bernanke's speech on Friday at Jackson Hole.

Despite the lacklustre trading session, all the three major indices are poised to log their first August gains since 2009. Home prices rose in June for the fifth month in a row, according to the S&P/Case-Shiller Home Price Index. However, consumer confidence unexpectedly fell in August to its lowest level since last November.GDP for the second quarter is expected to grow to 1.7%. And pending home sales may show a 1% growth in July after a contraction of 1.4% in June.

European markets ended lower amid ongoing global economic worries and ahead of the annual Jackson Hole Economic Symposium at the end of the week. In Spain, the recession is much deeper than feared. Data released shows the Spanish economy contracted by 1.3% in the second quarter of this year. This is worse than what analysts had predicted.

Domestically, India's foreign exchange (forex) reserves declined by US$250 million to US$288.91 billion for the week ended Aug 17, 2012, the Reserve Bank of India's (RBI) data showed. The reserves had increased by US$17.8 million to US$289.16 billion for the week ended Aug 10, 2012. The reserves had earlier risen by US$502.2 million to US$289.15 billion for the week ended Aug 3, 2012. The Reserve Bank of India is believed to have sold dollars during these weeks to curb the slide in the rupee's value. The partially convertible rupee slumped by 25 paise against the US dollar and stood at 55.39 against a

US dollar has weakened sharply in the last two months due to increased demands from oil importers and outflow of money by the foreign institutional investors as poor GDP growth data dampened sentiments in the Indian markets. Foreign currency assets, the biggest component of the forex reserves kitty in the week under review fell by US$263 million to US$256.65 billion, according to the weekly statistical supplement released by the RBI. Foreign currency assets had declined by US$34.1 million to $256.91 billion for the week ended Aug 10, 2012. The RBI in a statement said that foreign currency assets in US dollar terms included the effect of appreciation or depreciation of non-US currencies held in reserve, such as the pound sterling, euro and yen.

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