Markets may see a flat start

Headlines for the day:

Cairn selective in government okay for stake sale

Suzlon plans R&D centre, listing in China

Nestle to invest Rs500 crore in food processing unit



Events for the day:

Major corporate action

Inflation for August to be announced today, to view the update on this, kindly log on to Sharekhan.com at 12 pm.
Ex date for final dividend of KRBL
Ex-date for bonus issue of Gillanders Arbuthnot & Co

Pre-market report

Indian indices

The Indian markets kicked off the week in a stellar style. The Sensex and the Nifty moved into a new range and closed out high at 19200 and 5700 levels respectively.

Owing to the mixed Asian cues, the Indian bourses may open on a flat note. The Indian indices may slow down in today’s trade, following the Asian frontiers, which does not seemed to be supportive.

The inflation numbers for August will be out today and are expected to dip one percentage point. This may have some impact on the outcome of the Reserve Bank of India policy meeting on September 16, 2010. The investors will be keenly watching the inflation numbers.

The government’s new subsidy plan will provide huge relief to the sugar industry, which currently incurs heavy losses on levy sugar; the sugar stocks may remain in limelight.

Daily trend of FII/MF investment in equities

The foreign institutional investors (FIIs) continued to maintain their buying spree on the higher side. The FIIs bought shares worth a net of Rs1,176.60 crore on September 13, 2010, more than double of Rs462.70 crore on September 09, 2010. The domestic investors have sold the Indian stocks worth a net of Rs285.50 crore on September 09, 2010.

Global signals

The European markets hit their highest close since April on Monday (September 13, 2010), as banks surged on relief that new capital rules were not more demanding, and miners rose with metals prices as Chinese data prompted optimism.

The US stocks advanced to their highest levels in five weeks on Monday, taking the S&P 500 index near the top of its summer range on upbeat Chinese factory data and new global banking rules.

The Asian markets were trading mixed in the early trades. SGX Nifty was trading flat, 2.5 points up, suggesting for a flat start on the Indian bourses.

Commodity cues

Crude oil prices rose nearly 1% to a one-month high on Monday, spurred by an extended shutdown of a major Canada-US crude pipeline and strong Chinese demand growth and industrial output, as the crude oil futures for October delivery rose by $0.74, to settle at $77.19 a barrel.