Sensex set for a negative start; IIP nos eyed

Headlines for the day:

Cairn India raises Rs2,250 crore by selling bonds for first time

Tata Housing launches new residential project

Suzlon Energy gets board nod for Rs5000-crore issue



Events for the day:

Major corporate action

Tecpro Systems, Cantabil Retail India to list today
Prestige Estates Projects IPO opens today
IIP data for Aug to be announced today
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

The domestic markets have once again started drifting into ranges. Choppy is the best way to describe the markets’ trend as the indices have been taking a pause after climbing higher and then again resuming its upmove.

In today’s trade, the Asian markets are trading in the red, this may drag the domestic markets lower at the start. Though the global markets may get a bit unsupportive, this may negatively impact the Indian markets temporarily. The Indian indices would be more focused on the quarterly numbers and the foreign institutional investor (FII) inflows, which continue to remain robust. The expectations of healthy quarterly earnings have also buoyed the investor sentiment.

Today, all eyes will be on the index of industrial production (IIP) numbers for the month of August, which may set the tone for the markets.

There are two listings on the bourses today — Tecpro Systems and Cantabil Retail India — with an issue price of Rs355 and Rs135 respectively.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian stocks worth a net of Rs807.50 crore on October 11, 2010 as against net buy of Rs1,700.80 crore on October 08. The domestic investors have sold Indian stocks worth a net of Rs542.80 crore on October 08, 2010.

Global signals

The European shares set a two-week closing high on Monday (October 11, 2010) on persistent talk that the US Federal Reserve will step up efforts to support the economy, while investors awaited the US corporate earnings for further direction.

The US stocks drifted in the lightest trading volume of the year on Monday as few dared to place bets ahead of key companies' results later this week.

The Asian markets were trading lower. SGX Nifty was trading 15 points down, suggesting to a negative start on the Dalal Street.

Commodity cues

Oil prices slipped toward $82 a barrel on Monday, retreating from a five-month high hit last week, on signs prices may have run ahead of demand.