Flat start likely; RBI's move eyed

The Indian markets are expected to begin on a flat note tracking mixed Asian cues; RBI's mid-quarterly review will be in focus

Headlines for the day:

Indirect tax kitty swells 42% in April-November period

Essar Steel in pact with Kobe Steel

Centre planning to set up telecom security panel



Events for the day:


Major corporate action

RBI's mid-quarter policy review will be declared today
India's weekly inflation will be announced, to view the update on this, kindly log on to Sharekhan.com at 12 pm.
Punjab & Sind Bank IPO closes today
ONGC board to consider bonus issue and stock split

Pre-market report

Indian indices

The Indian markets have performed well so far in this short trading week despite of the decline seen in the yesterday's trade. The Sensex and Nifty have gained 139 points (0.71%) and 35 points (0.59%) respectively.

Today, the markets are likely to start on a flat to positive note following the mixed Asian cues. However, going into today's trade, the markets are expected to remain volatile as weekly inflation readings are going to be announced.

The investors will focus on the policy review meeting of the Reserve Bank of India (RBI) scheduled today. Since no change in policy is expected, it is likely to be a non-event from the stock market's perspective. However, if RBI makes some changes in its policy, it will surely get reflected on the bourses.

The advance tax numbers for the third quarter of the current financial year till now have been robust, with Reliance Industries, LIC, State Bank of India and Tata Steel paying over Rs1,000 crore each, this may provide some support in future course of trend.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian stocks worth a net of Rs94.30 crore on December 15, 2010 as compared to the net sell of Rs237.60 crore on December 14, 2010. The domestic investors have bought Indian shares worth a net of Rs298.40 crore on December 14, 2010.

Global signals

The European shares fell on Wednesday (December 15, 2010), snapping its longest winning run in six months after Moody's said it could downgrade Spain's debt rating, with banks featuring among the worst performers.

The US markets fell and witnessed a third straight late-day sell-off on Wednesday, as the dollar rallied after Moody's warned Spain its debt rating could be downgraded, bringing concerns about the euro-zone debt crisis back to the forefront.

The Asian stock markets were trading mixed as renewed concerns over euro-zone sovereign debt sidelined buyers. SGX Nifty was trading mere six points higher, pointing to have a flat to positive start on the Dalal Street.

Commodity cues

Crude oil prices rebounded on Wednesday as US crude inventories posted their biggest weekly decline in eight years, but gains were tempered by a stronger dollar. The crude oil futures for January 2011 rose by $0.34, to settle at $88.62 a barrel.