Negative start likely on weak global cues

Headlines for the day:

Marginal hike in fuel prices

Maruti to invest Rs1,925 crore in third plant at Manesar

Tata Steel seeks UMPP-like boost for steel



Events for the day:

Major corporate action

Vantage Corporate Services board to consider stock split
Ex-date for dividend of BPCL, Alok Industries
Ex date for final dividend of NTPC, Gitanjali Gems
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

After opening the week in style, the Sensex and the Nifty have been slowed down in the previous session. However, the Nifty touched the 5600 levels after two-and-a-half years in the previous trade. But, the markets may take a breather in today's trade and the opening on the Dalal Street may be negative. The indices around the world were in the red amid concerns over the health of European banks.

Being the short-trading week, the stock specific activity is expected to rule the market. The petrol and diesel prices across the country increased by 9-13 paise a litre with effect from Tuesday (September 07, 2010) midnight, after the government decided to increase the commission to petrol pump dealers. In Delhi, the price of petrol will go up by 13 paise to Rs51.56 a litre, while diesel will be 9 paise costlier to Rs37.71 per litre. The price of auto liquefied petroleum gas (LPG) will also increase by 8 paise to Rs30.94 a litre. This news may keep the oil and gas companies' shares in focus.

Daily trend of FII/MF investment in equities

The foreign institutional investors (FIIs) have bought shares worth a net of Rs1,039.60 crore on September 07, 2010, much higher than Rs486.20 crore on September 06, 2010, which has led the Indian shares to a 31-month high. The domestic investors have bought Indian stocks worth a net of Rs354.30 crore on September 06, 2010.

Global signals

The European markets fell on Tuesday, stubbing out a two-week rally, with banks hit by concerns over the sector's health and the impact of capital reform, while miners dropped on renewed jitters over Australia's tax plan.

The US stocks fell in very light volume on Tuesday as investors seized on renewed concerns about European banks as a reason to sell shares after strong gains last week.

The Asian markets were trading with a negative bias after Wall Street declined. SGX Nifty was trading 15 points lower, pointing to have a negative start on the Indian bourses.

Commodity cues

Crude-oil prices fell in synch with stocks on Tuesday amid concerns over European banks and economic growth, as the crude oil futures for October delivery dipped by $0.51, to settle at $74.09 a barrel.