Markets likely to get a soft start

Headlines for the day:

Centre may drop veto from GST Bill

ONGC may bid for Arctic fields

Canadian fund plans to buy out GMR in InterGen



Events for the day:

Major corporate action

Asian Hotels (East) to be listed today
Ex-date for dividend of Riddhi Siddhi Gluco Biols, Tinplate Company of India
Results: Bharti Airtel, Financial Technologies
For more events and news, log on to Sharekhan.com

Updates on global events

The US FOMC Rate Decision as on August 10, 2010 remained unchanged at 0.25%.

The US ABC Consumer Confidence for the month ended August 2010 fell by 47.

Pre-market report

Global signals

The European markets fell on Tuesday (August 10, 2010), as miners tracked lower metals prices and investors scaled back expectations the US Federal Reserve would announce further steps to prop up the economy.

The US markets fell on Tuesday but closed off their lows after the Federal Reserve said it would take new steps to counter a weak recovery.

The Asian markets were trading lower in their early trades, following the overnight fall on the Wall Street. SGX Nifty was trading 23.5 points lower, pointing towards a soft start on the Dalal Street.

Indian Indices

The world markets were dependent on the Fed’s move, which would provide some direction to the ongoing trend. The outcome of the Fed meet showed that it kept the key interest rates unchanged and announced measures designed to boost the sluggish economic recovery. The US markets pared losses after Fed’s comments.

Tracking the weak global scenario, the Indian markets are expected to begin lower. However, it may remain weak owing to global economic slow down. But, the index heavyweight Bharti Airtel, which will declare its results today, may bring some momentum in the markets.

Other companies that will announce their results are Bosch, Financial Technologies, Videocon Industries and the stocks will be closely eyed.

Commodity cues

Oil futures prices fell on Tuesday, but pared losses in late trade after the Federal Reserve said it would keep interest rates low and take other steps to cut borrowing costs and encourage economic recovery, as the crude oil futures for September delivery declined by $1.23, to settle at $80.25 a barrel.

Daily trend of FII/MF investment in equities

Foreign institutional investors (FIIs) sold shares worth a net Rs58.60 crore on Tuesday, as against an inflow of Rs829.10 crore on Monday (August 09, 2010). The FIIs turning net sellers may put some pressure on the Indian markets.