Flat start on the cards

The domestic markets are likely to witness a flat opening as the Asian indices does not seem to be supportive.

Headlines for the day:

Essar to issue $500-million FCCBs to finance acquisitions
Tata Steel may invest $2-2.4 billion annually in capacity expansion
Traders halt off-take of sugar, fear price freefall



Events for the day:
Major corporate action
Tata Steel FPO opens today
Hindustan Zinc board to consider stock split & bonus issue
Results: Wipro, Bajaj Auto, HCL Technologies
For more events and news, log on to Sharekhan.com Pre-market report

Indian indices

The domestic markets picked up momentum and posted smart gains in the previous session. But, this does not mean that the market is out of the woods. Results will continue to have a bearing on the sentiment in the near term. Today, the markets are likely to begin on a flat note tracking mixed Asian cues.

World's seventh largest steel maker Tata Steel's follow-on public offer (FPO) is set to open for subscription today. It has fixed price band of Rs 594-610 a share for its FPO of 5.7 crore ordinary equity shares of Rs 10 each. The company aims to raise Rs3385.8-3477 crore through the issue, which will close on January 21. The stock will be closely eyed.

HCL Technologies, Bajaj Holdings, Wipro, Bajaj Auto, LIC Housing Finance and Hindustan Zinc will announce their results today; stocks will remain in action.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs53.70 crore on January 18, 2011 as against net sell of Rs694.50 crore on January 17, 2011. The domestic investors have purchased Indian shares worth a net of Rs45.70 crore on January 17, 2011.

Global signals

The European shares hit their highest close in more than 28 months on Tuesday (January 19, 2011), as euro zone finance ministers inched towards improving a rescue fund, and investor confidence grew in.

The US stocks gained on Tuesday, overcoming weak Citigroup results and concerns circling Apple after news of Chief Executive Steve Jobs' medical leave.

The Asian markets were trading mixed. SGX Nifty was trading 17 points lower, suggesting for a flat start on the Indian bourses.