Markets may begin flat

Headlines for the day:

Renuka sugars, HPCL plan ethanol unit in Maharashtra

R-Power and RNRL merger gets nod

OilMin refers Cairn India sale to SEBI



Events for the day:

Major corporate action

Karur Vysya Bank board to consider bonus issue
Ex date for final dividend of NHPC, Power Grid Corporation of India
Ex-date for stock split of Shree Rang Mark Travels
For more events and news, log on to Sharekhan.com

Pre-market report

Global signals

The European shares edged higher on Monday (September 06, 2010), adding to a strong rally last week, with utilities rising after Germany extended nuclear power plants' lifespans, but in low volumes with Wall Street closed.

The US markets were shut on Monday on account of Labour Day holiday.

The Asian markets were trading flat as there was no support from the US markets. SGX Nifty was trading 7 points higher, indicating towards a flat start on the Indian markets.

Indian indices

The cheerful mood across the globe was led by upbeat US jobs report, which eased fears that the global economy could slip back into recession. In the previous session, the domestic indices closed at a 31-month high owing to optimism across the world.

Going in to today’s trade, the domestic indices may not get any clue from the US markets as they were closed. At the starting trade, the domestic indices will be dependent on the Asian markets for direction. The domestic indices may not make wonders that it made in the previous session, as the indices will remain clueless in today’s trade. The Indian markets are expected to begin on a flat note and are expected to remain in a narrow range. The Indian markets will look towards global peers for direction

Today, about 1 million employees of Indian banks plan to go on a one-day strike to protest a host of issues including foreign direct investment in public sector banks and entry of foreign banks amongst others. The strike has been called by the All India Bank Employees Association (AIBEA) in support of the strike call given by the National Convention of Central Trade Unions, AIBEA said in a press release. All the banking stocks will hog the limelight in today’s trade.

Commodity cues

Crude oil prices declined as the crude oil futures for October delivery dipped by $0.42, to settle at $74.60 a barrel on September 03, 2010.

Daily trend of FII/MF investment in equities

The foreign institutional investors (FIIs) have maintained their bullish stance and continued their buying trend, as they bought Indian equities worth a net of Rs486.20 on September 06, 2010, as compared to net buyers of Rs147.90 crore on September 03, 2010. The domestic investors have bought Indian stocks worth a net of Rs19.50 crore on September 02, 2010.