Flat start likely

Headlines for the day:

Essar may get Rs3,493 crore windfall from Vodafone

Indian Oil Corporation set to enter gas pipeline business

JSW Energy to raise Rs13,500-crore debt



Events for the day:

Major corporate action

Technofab Engineering will be listed today
Cera Sanitaryware board to consider bonus issue
Results: Chambal Fertilesers & Chemicals
For more events and news, log on to Sharekhan.com

Updates on global events

The Bank of England Housing Equity Withdrawal for first quarter ended stood at (£3.2B) aginst the estimate of (£3.5B)

The USD Producer Price Index (MoM & YoY) for the month ended June 2010 stood at (0.5%) and (2.8%) respectively.

Pre-market report

Global signals

The European shares fell on Thursday (July 15, 2010) after downbeat inflation and manufacturing data from the United States pointed to sluggish growth, overshadowing optimism for corporate results after strong earnings from JPMorgan

The US stocks ended flat on Thursday. The Dow Jones Industrial Average fell 7.41 points to 10359.31 and the Nasdaq Composite declined 0.76 point to 2249.08 on news that oil from the British Petroleum spill stopped flowing and a Goldman Sachs civil fraud deal was imminent.

The Asian markets were mixed in their early trades on Friday (July 16, 2010) as a drop in the US factory output fuelled concern over the strength of a recovery in the world's biggest economy. SGX Nifty was trading 0.5 points lower, pointing towards a flat start on the Dalal Street.

Indian Indices

The world markets have been slowed down after the poor economic data in the US, which raised concern about the economic recovery.

The Sensex in its last four sessions have gained only 76 points as compared to the previous week’s gains of around 373 points. The Q1FY11 earnings season till now have not provided any momentum in the market. The global markets have also been unsupportive. Tracking the mixed Asian cues, the domestic markets are expected to begin on a flat note.

The market players will keep an eye on the movement of Tata Consultancy Services, as the company has declared its results after the market hours yesterday, which were above market expectations. This may bring back some momentum..

There is a new listing on the bourses, Technofab Engineering, specialises in engineering, procurement and construction services. Its issue price has been fixed at Rs240 per share, at higher end of price band of Rs230-240.

Chambal Fertilizer result is slated to be announced today, stock will be closely eyed.

Commodity cues

The oil prices fell for the second consecutive session on concern of weak economic data, as crude oil futures for August delivery dipped $0.42, to settle at $76.62 a barrel.

Daily trend of FII/MF investment in equities

The foreign institutional investors (FIIs) have been the net buyers for the seventh straight session. The fund flow in this week has been muted as compared to the previous week on concern of the global economic recovery and unappetizing earnings season.