Markets set to begin flat

Headlines for the day:

Govt to scrutinise Cairn deal before deciding on okay

IRDA may cap fee on basic policies

Central retreat brings hope for GST agreement



Events for the day:

Major corporate action

Ex-date for dividend of Larsen & Toubro, Lanco Industries

Ex-date for final dividend of Dalmia Cement, Jagran Prakashan

For more events and news, log on to Sharekhan.com

Updates on global events

The US Net Long-term TIC Flows for the month ended June 2010 stood at $44.4 billion as compared to $35.3 billion in the previous month.

The US Net NAHB Housing Market Index for the month ended August 2010 stood at 13 as compared to 14 in the previous month.

Pre-market report

Global signals

The European shares ended flat on Monday (August 16, 2010), with stronger miners and retailers offset by weaker banks as data from both Japan and the United States cast further doubt about the economic recovery.

Investors found little reason to buy stocks on Monday as the Dow and S&P 500 ended barely changed, suggesting that even several days of losses have not convinced institutions share prices are attractive.

The Asian markets were trading mixed owing to a flat close on the Wall Street. SGX Nifty was trading 5 points higher, indicating towards a flat opening on the Indian bourses.

Indian Indices

The global recovery concerns have been weighing on the world markets owing to a slowdown in Japan's economic growth and tepid local manufacturing figures. The growth concerns continued to rattle investors' confidence.

After a weak finish in the previous session, the domestic markets are expected to open on a flat note on account of not so strong global cues. The markets are likely to trade in a tight range in the absence of any major trigger. The markets have been waiting for triggers to take a decisive direction. It is expected to be a dull day for the markets unless the global sentiment improves substantially. Any major activity in specific stocks may also add to the momentum.

Vedanta wants to buy 51% stake in Cairn India. Vedanta will sell 9% to Sesa Goa to make sure that Sesa Goa continues to hold 20% and between 31-40% is held by Vedanta. So, Cairn and Sesa Goa stocks will be in focus.

Commodity cues

Crude-oil futures settled at a five-week low Monday as lingering concerns about the global economy rendered efforts to post gains futile.

Daily trend of FII/MF investment in equities

Foreign institutional investors (FIIs) inflows remain fairly strong and will continue to support the market incase of a correction. FIIs have bought Indian equities worth a net of Rs717.20 crore on Monday, August 16, 2010 higher than Rs449.40 crore on Friday, August 13, 2010.