Markets to fall at start; Inflation nos eyed

The Indian markets are set to start the session on a negative note mirroring unsupportive global markets; the inflation numbers for December 2010 will be in focus

Headlines for the day:

IL&FS to control Maytas Properties

Britannia forays into breakfast food category

Union Bank to market its first Swiss Franc-denominated debt



Events for the day:

Major corporate action

Monthly inflation of December 2010 to be announced today, to view the update on this, kindly log on to Sharekhan.com at 12 pm
Results: Zee Learn, HDFC, Godrej Properties

Pre-market report

Indian indices

The Indian markets kick-started the earnings season with not the best set of numbers and big disappointment was Infosys Technologies, with its below expectations results. The markets are witnessing tough times, so investors may remain cautious to take any position in the current volatile market.

Owing to the negative global cues, the Indian bourses are expected to open in the red, extending previous session's losses.

The key event to watch out for today is the monthly inflation numbers of December 2010 as its outcome may have some bearing on the Reserve Bank India's policy meet, which is scheduled on January 25, 2011. The banking stocks will remain in focus.

Economists inflation based on wholesale prices to rise to 8.40% in December 2010 from 12-month low of 7.48%.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs98.20 crore on January 13, 2011 as compared to the net sell of Rs1,123.60 crore on January 12, 2011. The domestic investors have bought Indian shares worth a net of Rs242.30 crore on January 12, 2011.

Global signals

The European shares fell on Thursday (January 13, 2011) from the previous sessions 28-month highs on concern euro zone inflation pressures could spark a rise in interest rates, while miners were hit by a waning outlook for Chinese copper demand.

The US stocks edged lower on Thursday, hurt by a slide in drugmaker Merck and as falling commodities prices hit shares of natural resource companies.

The Asian markets were trading lower following Wall Street's losses. SGX Nifty was trading 9.5 points down, indicating to have a negative start on the Indian bourses.

Commodity cues

Crude oil slipped on Thursday as markets weighed disappointing US jobless claims data and the prospect OPEC would raise output should prices break above $100 a barrel for an extended period. Crude for February delivery declined by $0.46, to settle at $91.40 a barrel.