Markets set for a cautious start

The Indian equities may have a cautious start mirroring the mixed Asian markets and decline in US markets. The FPO offer of Power Grid Corporation opens for bidding today

Headlines for the day:

Oil PSUs raise petrol price by 31 paise

India, US to set up $10-billion infra debt fund

3i India, partners invest Rs1,200 crore in GVK Energy



Events for the day:

Major corporate action

Power Grid Corporation of India FPO opens today
Silverline Animation Technologies board to consider stock split
Results: Tata Motors, GMR Infrastructure, Hindalco Industries
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

The Indian indices took a breather in the previous session and started the week on a weak note after the recent rally. Today, the markets expect a cautious start following the mixed Asian markets.

The market players will keep a watch on the progress of the winter session of the parliament, which begins today. The controversial Land Acquisition (Amendment) Bill, the Forward Contracts Regulations (Amendment) Bill and the Banking Laws (Amendment) Bills are to be presented before the parliament during the winter session.

State-run oil marketers have raised petrol prices by approximately 31-33 paise a litre, the fourth time since the government lifted control on pricing of the motor fuel on June 25, which could trigger sharp moves in the oil marketing companies' stocks.

The follow-on-public offer of state-run Power Grid Corporation opens for bidding today, there may be some diversion of funds from the secondary market.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian stocks worth a net of Rs6,906.90 crore on November 08, 2010 as against net buy of Rs1,297.10 crore on November 04, 2010. The domestic investors have bought Indian shares worth a net of Rs45.20 crore on November 05, 2010.

Global signals

The European markets were flat on Monday (November 09, 2010), near six-month closing highs, as positive momentum from last week was offset by renewed worries about euro zone debt, strengthening the dollar and hurting commodities prices.

The Wall Street retreated from a two-year high on Monday, weighed down by financial stocks and a stronger dollar.

The Asian markets were trading mixed, mirroring a decline in US markets as some investors took a break after the recent market rally. SGX Nifty was trading 6.5 points lower, indicating towards a cautious start on the Dalal Street.

Commodity cues

Crude oil prices edged up on Monday, posting a sixth straight rise to a two-year peak above $87 a barrel, as the crude oil futures for December gained by $0.24, to settle at $87.06 a barrel.