Markets set to start flat

Headlines for the day:

Home ministry asks dot to stop all 3G services

Government dilutes 25% public float norms

Lupin sues Ranbaxy in US for patent infringement



Events for the day:

Major corporate action

Prakash Steelage IPO closes today
Results: Educomp Solutions, Jai Corp, Tata Motors
Ex-date for dividend of Grasim Industries, Tata Motors
For more events and news, log on to Sharekhan.com

Updates on global events

The UK RICS House Price Balance for the month ended July 2010 fell by 8%.
Pre-market report

Global signals

The European shares closed higher on Monday (August 09, 2010), propelled by a boost to oil majors from strong crude prices and lifted by speculation that the US Federal Reserve may inject extra stimulus measures to spur the economy.

The US stocks rose on Monday in the quietest session of the year on speculation that the Federal Reserve would signal potential steps to boost the sluggish economic recovery.

The Asian markets were trading flat in their early trades on Tuesday (August 10, 2010). SGX Nifty was trading 1.50 points lower, indicating towards a quiet start on the Indian bourses.

Indian Indices

The benchmark indices have made their fresh 2-1/2 year high in the previous session. However, the monetary policy meeting of the US Federal Reserve is scheduled later today, which will decide the tone of the domestic indices in today’s session. The growing expectations that the US Federal Reserve is ready to renew its stimulus efforts to prop up a weakening US economy may provide some support to the domestic markets.

However, tracking the mixed Asian cues, the domestic markets are expected to open flat. The continuous buying by the foreign institutional investors (FIIs) have been supporting the domestic markets and not letting the markets to fall drastically.

The companies that will declare their results today and may have some effect on the Indian bourses are Nicholas Piramal, IVRCL Infrastructures & Projects, Rashtriya Chemicals & Fertilizers, Educomp Solutions, Jai Corp and Tata Motors. The stocks will be in focus.

Commodity cues

Oil rose on Monday for the first time in four sessions, edging back above $81 a barrel on expectations that the Fed will keep borrowing rates low and may signal its readiness to print more money to support a faltering economic recovery.

Daily trend of FII/MF investment in equities

The FIIs have shown faith in the India growth story and their investments are expected to increase in the coming periods. The huge inflow may support the Indian equities.