Markets head towards a gap-down opening

The domestic markets may resume the session on a negative note mirroring the weak cues from Asian markets. The shares of Gravita India will be listed today

Headlines for the day:

GE India to localise bulk of its domestic products

8 companies bid for MERC's power licence, R-Infra skips

Liquidity tightness still above RBI comfort zone



Events for the day:

Major corporate action

Gravita India is to be listed today
Ex-date for stock split of MVL
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

The benchmark indices have started the holiday shortened week on a higher note amid worries about the global economic health.

Sentiment in Asia was muted due to fresh concerns about Europe's sovereign debt problems. The Indian indices may expect a negative opening following the cues from Asian markets. The foreign institutional investors (FIIs) inflows, which has slowed down in recent days coupled with global economic woes may impact Indian markets to trade sideways.

Gravita India, a manufacturer of lead metal will be getting listed today on the bourses. Its issue price has been fixed at Rs125 per share, at higher end of price band of Rs120-125.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs683.20 crore on November 15, 2010 as against net buy of Rs110.80 crore on November 12, 2010. The domestic investors have sold Indian shares worth a net of Rs99.30 crore on November 10, 2010.

Global signals

European stocks closed higher on Monday (November 15, 2010) as data that reassured on the prospects of economic recovery proved a stronger theme than euro zone debt worries. The auto sector also performed well driven up by M&A activity.

US markets slipped on Monday as concerns that the Federal Reserve may scale back its efforts to stimulate the economy muted optimism over two big takeover bids. Caterpillar Inc agreed to buy mining equipment maker Bucyrus International Inc for $7.6 billion and data storage equipment maker EMC Corp inked a deal to buy smaller rival Isilon Systems Inc for $2.25 billion.

Asian markets were trading down. Rate increase by the Bank of Korea weighed on the market sentiments in Seoul. SGX Nifty was trading 19.5 points lower, suggesting towards a negative start on the Dalal Street.

Commodity cues

Crude oil prices ended slightly lower on Monday, weighed down by extended gains in the dollar on higher treasury yields. The crude oil futures for December 2010 declined by $0.02, to settled at $84.86 a barrel.