Markets expect a cautious start

Headlines for the day:

Power Grid wants fresh offers for Rs7,000-crore project

Suzlon in talks to buy all of REpower

Steel prices may go up by Rs1,500 a tonne



Events for the day:

Major corporate action

Bedmutha Industries IPO opens today
Tecpro Systems, Ashoka Buildcon IPO closes today
Ex-date for stock split of Tirupati Sarjan
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

The world stocks fell amid uncertainty about the outlook of the global economic recovery. The start on the Indian bourses is likely to be cautious, as it seems like the markets have been running out of a bit of steam.

The Indian markets are expected to witness a lacklustre session. If the sentiments improve globally, the Indian markets may get some support and are expected to track global markets for direction. Foreign institutional investors (FIIs) inflows remain strong and will continue to support the market in case of a correction.

Today, the Supreme Court will decide on whether to allow the High Court in Lucknow to deliver its verdict in the Ram Janmabhoomi-Babri Masjid dispute before the end of the month. This may have some impact on the stock markets.

Daily trend of FII/MF investment in equities

The FIIs are quite bullish on the domestic markets and have bought Indian shares worth a net of Rs1,338.70 crore on September 27, 2010, higher than Rs582.70 crore on September 24, 2010. The domestic investors have sold the Indian stocks worth a net of Rs299.30 crore on September 24, 2010.

Global signals

The European stocks ended a thinly traded session in the red and just off lows on Monday (September 27, 2010), tracking the US weakness ahead of fresh macro data, and led by biotech Actelion after a key drug failed a late-stage trial.

The US stocks slipped on Monday, as investors took a break from a four-week rally, but they remained optimistic the advance would resume as a flurry of deals suggested companies were seeing value in the market

The Asian markets were trading slightly lower tracking overnight Wall Street losses. SGX Nifty was trading 9.5 points lower, pointing towards a cautious start on the Indian bourses.

Commodity cues

Oil prices edged up on Monday in choppy trading, mostly tracking equities that were buffeted by bearish concerns about euro-zone banks and a bullish flurry of merger and acquisition deals.