Flat to negative start likely; Inflation nos eyed

The Indian equities head towards a flat start with negative bias following the subdued Asian markets. The monthly inflation numbers will be eyed.

Headlines for the day:

RBI looks to ease liquidity situation

Adani Power to double Mundra plant capacity

Reliance Communications set to raise $500 million abroad



Events for the day:

Major corporate action

India's monthly inflation to be announced today, to view the update on this, kindly log on to Sharekhan.com at 12 pm.Ex-date for dividend of Rolta India, Ballarpur Industries
Ex-date for final dividend of Kemrock Industries
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

The Indian markets fell on broad-based selling after briefly consolidating in the initial part of last week. Trading may resume flat with negative bias taking cues from Asian peers which are quiet subdued on jitters over a hike in Chinese interest rates.

After disappointing index of industrial production (IIP) data for the month of September, all eyes will now be on the monthly inflation numbers readings, which are going to be announced later today. Owing to this, the markets are expected to remain volatile.

The market may see some rebound following last week's sharp setback. But the undertone is most likely to be cautious and action may well turn out to be stock specific later in the week, with recent results and earnings outlook setting the trend.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian stocks worth a net of Rs110.80 crore on November 12, 2010 as against net buy of 107.60 crore on November 11, 2010. The domestic investors have sold Indian shares worth a net of Rs99.30 crore on November 10, 2010.

Global signals

European markets ended lower on Friday (November 12, 2010) after talk of an interest rate rise in China unnerved investors and sent macro-sensitive commodity stocks tumbling, while gains in the euro zone periphery helped cap losses.

Wall Street ended a five-week winning steak on Friday as the threat of rising interest rates in China prompted investors to book profits and reassess bullish positions in equities.

Majority of the Asian markets were higher in their early trade, with sentiment in Japan bolstered by strong economic growth data and a weaker yen. SGX Nifty was trading 1.5 points higher, indicating towards a flat start on Indian markets.

Commodity cues

Crude oil prices slumped more than 3% on Friday, retreating from a 25-month high, amid a broad commodities rout on fears that China may raise interest rates to brake its economy and concerns about euro zone debt. The crude oil futures for December 2010 declined by $3.34, to settled at $84.88 a barrel.