Flat-to-positive start likely

Headlines for the day:

Canara Bank looks at acquisition to enter US

Insurers may get to raise tier-II capital

IAF order worth Rs250 crore to Indian industry



Events for the day:

Major corporate action

India’s weekly inflation to be announced today, to view the update on this, kindly log on to Sharekhan.com at 12 pm.
Coal India IPO closes today
Subuthi Finance board to consider bonus issue
Results: Tata Consultancy Services, Ambuja Cements, ACC

Pre-market report

Indian indices

The second quarter results announced so far have been decent. However, the markets are seen running out of momentum, with the Sensex and the Nifty almost down this week till now due to slowdown of foreign funds.

In today’s session, the Indian markets are expected to begin on a flat to positive note owing to marginally higher Asian markets. The markets may remain volatile as weekly inflation readings are going to be announced today.

ACC, Allahabad Bank, Alstom Projects, Ambuja Cements, Corporation Bank, Indiabulls Financial Services, TVS Motor, Wipro, Tata Consultancy Services will declare their results today; the stocks will be in focus.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian stocks worth a net of Rs341 crore on October 20, 2010 as against net buy of Rs815.70 crore on October 19, 2010. The domestic investors have sold Indian stocks worth a net of Rs460.40 crore on October 19, 2010.

Global signals

The European shares bounced back to finish higher on Wednesday (October 20, 2010), led by strength in mining and automobile stocks, though mixed company earnings and massive UK government spending cuts capped gains.

The Wall Street bounced back on Wednesday as a fall in the dollar spurred buying in industrial and commodity-linked shares, while another batch of strong corporate earnings added to gains.

The major Asian markets were trading higher following overnight gains on the Wall Street. SGX Nifty was trading 11 points higher, suggesting towards a flat to positive start on the Indian bourses.

Commodity cues

Crude oil prices rebounded nearly 3% on Wednesday, the biggest daily percentage gain in more than a month, as a weaker dollar, stronger equities and a smaller-than-expected rise in US crude stockpiles whetted investors' risk appetite, as the crude oil futures for November delivery rose by $2.87, to settle at $81.77 a barrel.