Markets set for a lower start; IIP data eyed

The Indian indices are expected to start the session on a lower note tracking negative Asian markets. The IIP numbers for October 2010 will be eyed.

Headlines for the day:

ONGC bids for Exxon stake in Angola block

NMDC, Severstal to set up steel plant in Karnataka

Lavasa gets one more day to submit maps, other data



Events for the day:

Major corporate action

A2Z Maintenance & Engineering Services, Ravikumar Distilleries IPO closes today
IIP data for the month of October to be announced today
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

The pace of the Indian equities has been slowed down in this week as the markets have almost erased its last week's gains. The Sensex and Nifty fell by 725 points (3.63%) and 226 points (3.77%) respectively till now.

In today's trade, the negative cues from the Asian markets may drag the domestic markets lower at the start. Markets may trade sideways, as investors may remain cautious awaiting the interest rate hike from China.

The industrial production data for October 2010 will be announced later today. The volatile industrial output growth slowed unexpectedly in September 2010 to 4.4%. This may be the major trigger to decide the further course of trend in near term.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs1,297.80 crore on December 09, 2010 substantially higher as compared to the net sell of Rs419.60 crore on December 08, 2010. The domestic investors have sold Indian shares worth a net of Rs269 crore on December 03, 2010.

Global signals

European shares rose for a fourth straight day to hit a 26-month closing high on Thursday (December 09, 2010), as a fall in US jobless claims, as well as extended tax cuts, sparked optimism on growth in the world's biggest economy.

US stocks closed mixed, the Dow Jones Industrial Average fell 0.02%, the S&P 500 index gained 0.38%, while the Nasdaq Composite index climbed 0.29%.

Asian markets were trading lower except Shanghai Composite, as investors remained on the sidelines amid heightened speculation of an imminent rate hike from China. SGX Nifty was trading 14 points lower, indicating to have a weak start on the Indian markets.

Commodity cues

Crude oil prices rose on Thursday, snapping two days of losses. The crude oil futures for January 2011 rose by $0.09, to settle at $88.37 a barrel.