Stocks may weaken at start

Headlines for the day:

Fiat JV revival becomes a priority for Tata Motors

RIL-NTPC dispute over D6 heading for truce

ACIL gets 45 acre for organic contract farming



Events for the day:

Major corporate action

Ex-date for final dividend of Orient Ceramics & Industries
Ex-date for stock split of Redington India
For more events and news, log on to Sharekhan.com

Updates on global events

The US continuing claims for the week ended August 07, 2010 stood at 4,478,000 as compared to 4,491,000 seen in the previous week.

The US initial claims for the week ended August 14, 2010 stood at 500,000 as compared to 488,000 seen in the previous week.

Pre-market report

Global signals

The European shares hit a one-month closing low on Thursday (August 19, 2010) after data showed new claims for US jobless benefits rose to a nine-month high and factory activity in the Mid-Atlantic region unexpectedly contracted.

The US stocks tumbled to their lowest close in nearly a month on Thursday as the latest batch of data amplified concerns the economy is stuck in neutral.

The Asian markets were lower in their early trades after Wall Street tumbled. SGX Nifty was trading 26 points lower, indicating towards a negative start on the Indian bourses.

Indian Indices

In the last two trading sessions, the Sensex and the Nifty have gained 406 and 126 points respectively, lifting the indices to cross their significant levels of 18400 and 5500 respectively.

The US economic data have again resurfaced worries over economic recovery that dragged the world markets. The Indian indices may take a pause in today’s session at the start. Following the weak global cues, the Indian markets are likely to begin lower. The investors are expected to remain sideways as the markets may witness a lacklustre session.

Commodity cues

Oil prices closed below $75 per barrel on Thursday, down for a second day in a row, as weak US data fueled worries on economic recovery, as the crude oil futures for September delivery dipped by $0.99, to settle at $74.43 a barrel.

Daily trend of FII/MF investment in equities

Foreign funds have bought Indian equities worth a net of Rs515.90 crore on August 18, 2010, substantially lower than Rs558.40 crore on August 17, 2010.