Markets set to open flat

Headlines for the day:

Mahindra ahead in race for Ssangyong Motor

Tata Motors mulls new plant for small trucks

Reliance Power plans 25% stake sale, may raise Rs9,000 crore



Events for the day:

Major corporate action

Chandni Texiles board to consider stock split
Baba Arts board to consider bonus issue
Results: Reliance Communications, Cipla, Suzlon Energy
For more events and news, log on to Sharekhan.com

Updates on global events

The US continuing claims for the week ended July 31, 2010 stood at 4,452,000 as compared to 4,570,000 seen in the previous week.

The US initial claims for the week ended August 07, 2010 stood at 484,000 as compared to 482,000 seen in the previous week.

Pre-market report

Global signals

The European shares ended mixed on Thursday (August 12, 2010), with brewer Anheuser-Busch InBev boosted by a forecast-beating profit and GlaxoSmithKline rising on a drug approval.

The US markets ended lower for a third straight day on Thursday as an unexpected rise in the jobless claims and a sobering revenue outlook from Cisco underscored the hurdles to economic recovery.

The Asian markets were mixed in their early trades. SGX Nifty was trading 0.5 points up, indicating to have a flat start on the Indian bourses.

Indian Indices

The Indian markets traded weak in the previous session, however, managed to recover as above expectation Q1 results from SBI lifted the sentiments in the late trades.

The pace of economy recovery has heightened worries across the globe, which has made investors sideways from the markets. However, earnings reported by the companies have been the major triggers to bring back the sentiments. Today, the global cues are unsupportive, which may lead the Indian indices to open flat. In the last four trading sessions, the Sensex and Nifty lost 70 and 19 points respectively.

The index heavyweight Tata Steel will be eyed as its results were declared post market hours yesterday. The shares of the company may drive the market as its results were good, but below Street expectation after demand from automobile and construction companies rose both in India and Europe.

The companies that will announce their results are Adani Enterprises, Suzlon Energy, Ackruti City, Cipla, Reliance Communications and the stocks will be closely eyed.

Commodity cues

Oil slid 3% on Thursday, making its steepest three-day decline since mid-May after an unexpected rise in US jobless claims, as the crude oil futures for September delivery declined by $2.28, to settle at $75.74 a barrel.

Daily trend of FII/MF investment in equities

Foreign funds have bought Indian equities worth a net of Rs192.90 crore on August 12, 2010, substantially lower than Rs613.70 crore on Wednesday (August 11, 2010).