Sensex to open flat

Bulls would have no regrets for most positions taken in recent times thanks to an electrifying buying of sorts across the board. But then today is another day and things could turn out to be different.

So, one should be a little bit careful even as the bulls look to lift the key indices further up. Today’s start will be steady to cautious but the sentiment could turn around by the close, especially if the overseas markets extend gains.

Small- and Mid-cap counters will remain abuzz but don’t get carried away.

Asian markets are mixed to flat. European markets finished marginally higher on lower volumes. The US markets were closed for Labor Day.

Central banks in Japan and Australia are set to leave key rates steady today. Bank of Canada will take a call on rates tomorrow. The Bank of England will review its policy on Thursday.

The RBI meets on Sept. 16 to review its policy rates. The latest IIP data will be out on Sept. 10 and August inflation on Sept. 14.

The Nifty may surpass 5600 and go even farther but expect some resistance. Near-term support is likely at around 5550.

IT firms could be in action amid reports that ABN Amro could renew its $1bn contract. Shree Renuka Sugars is mulling picking up a major stake in NCDEX along with Jaypee Capital.

Pawan Kumar Ruia is considering a German acquisition under the listed entity - Falcon Tyres. Jindal Stainless is seeking permission of lenders to buy stake in a Orissa power project.

Idea Cellular could attract some attention amid reports that Etisalat may look at buying a stake in the company.

Karur Vysya Bank will consider a Bonus and a Rights Issue today.

The Board of Directors of Jyoti Ltd. will meet today to consider preferential allotment to promoters and non-promoters.

FIIs were net buyers of Rs9.46bn in the cash segment on Monday (provisionally), according to the NSE web site. Local funds were also net buyers of Rs3.92bn. In the F&O segment, the foreign funds were net buyers at Rs38.60bn. FIIs were net buyers of Rs4.86bn in the cash segment on Friday, as per SEBI's web site.

Important News Snippets For The Day:

The petroleum ministry has approved part-sale of government’s stake in ONGC and IOC, a move that could fetch the government over Rs240bn this financial year.

A proposed Rs500bn deal to merge telecom tower assets of Reliance Infratel with GTL Infrastructure has failed to materialize.

Reliance Industries, which has struck three shale gas joint ventures with US firms this year, may make a full buyout next, as the cash-rich firm builds the knowledge it needs to run such operations.

Shree Renuka Sugars is setting up an integrated sugar-cum-ethanol plant with oil marketing company Hindustan Petroleum Corporation (HPCL) in Maharashtra.

Hindustan Copper and Nalco’s joint bid to acquire a copper mine in Namibia has fallen flat after the mine owner decided to withdraw the offer halfway through the due diligence process.

HDFC Bank raised its benchmark prime lending rate (BPLR) by 50bps to 16.25%.

Tata Steel has raised the prices of flat products by about Rs1,000 a ton.



Fortis Healthcare is planning to list a REIT in Singapore over the next 6 months to house its property assets.

ArcelorMittal is in talks with Indiabulls for setting up a mining joint venture (JV) in India.

India’s net direct tax receipts for the period April-Aug rose 13.91% yoy.

Corporate tax receipts in April-August rose 17.05% to Rs577.5bn.

The ministry of coal is considering a proposal to commit at least 5% of profits from a project for local area development under guidelines being finalised for competitive bidding of captive coal blocks.