Sensex expects a cautious start

Headlines for the day:

IRDA norms could cap charges on ULIPs

Parsvnath plans to raise up to $67 million via QIP

RIL tax battle with UP holds up gas sale to NTPC, IOC



Events for the day:

Major corporate action

Microsec Financial Services to list today
Commercial Engineers IPO closes today
For more events and news, log on to Sharekhan.com

Updates on global events

The US Pending Home Sales for the month ended August 2010 rose by 4.3% as compared to 4.5% seen in the previous month.

The US Factory Orders for the month ended August 2010 declined by 0.5% as compared to rise of 0.5% seen in the previous month.

Pre-market report

Indian indices

The domestic markets have been climbing higher, touching new highs owing to sustained inflows of foreign capital. However, the start on the Dalal Street is likely to be different in today’s trade. The world markets are fragile amid lingering fears over strength of the economic recovery.

The domestic markets are expected to begin on a cautious note as global markets have witnessed some softening. However, the investor sentiment is pretty upbeat, as foreign institutional investors (FIIs) have remained bullish on the domestic markets. There is no need to be scared if there is a mild correction following the kind of rally that we have seen in the past few sessions.

There is a new listing on the bourses, Microsec Financial Services, a non banking finance company, its issue price has been fixed at Rs118 per share, at higher end of price band of Rs113-118.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian shares worth a net of Rs1,964.10 crore on October 04, 2010 as compared to Rs4,755.8 crore on October 01, 2010. The domestic investors have sold the Indian stocks worth a net of Rs18 crore on October 01, 2010.

Global signals

The European shares fell for a sixth straight session on Monday (October 04, 2010), as a decline in the US factory orders more than offset rising home sales, adding to investors' worries about the strength of the economic recovery.

The US stocks fell in light trading on Monday as investors took profits on recent gains, using middling economic data and worries about euro zone debt as a catalyst for shedding long positions.

The Asian markets were trading lower, pressured by falls on the Wall Street. SGX Nifty was trading 8 points down, indicating to have a cautious start on the Dalal Street. Shanghai Composite index is shut today.

Commodity cues

Crude oil prices seesawed on Monday, supported by a strike at France's top oil port and disruptions to Houston petrochemical shipping, while a dollar bounce and Wall Street weakness kept gains in check.