Markets to get a soft start on weak global cues

The markets are expected to resume the trade on a negative to cautious note taking cues from the sluggish global markets.

Headlines for the day:

New base rate method by June 30: RBI

Riversdale, Tata to own Mozambique power plant

Anil Ambani to increase stake in R-Infra to 47.7%



Events for the day:

Major corporate action

Ex-date for dividend of Nelco
Ex-date for bonus issue of Tulsi Extrusions
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

Indian markets

Despite welcoming the New Year on a positive note on the first trading day, the Indian markets have been in pressure throughout this week. The Sensex and Nifty have declined 324 points (1.58%) and 97 points (1.40%) respectively.

Markets are likely to be begin trade today on a soft-to-cautious note and may remain rangebound throughout the day until any positive trigger brings momentum. Market players will remain cautious while taking any fresh positions.

The outlook of Indian market remains uncertain as foreign fund flows towards India are expected to slowdown due to inflationary pressures.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs92.40 crore on January 06, 2011 as compared to the net buy of Rs779.30 crore on January 05, 2011. The domestic investors have sold Indian shares worth a net of Rs293.40 crore on January 04, 2011.

Global signals

European markets climbed to their highest in nearly 28 months on Thursday, though pared gains late in the session as investors scaled back their trading positions ahead of Friday's US non-farm payrolls data.

US stocks closed mixed on Thursday as investors took a pause after slightly disappointing jobs data, which raised concerns ahead of monthly unemployment report.

Asian markets were trading lower following the mild losses on Wall Street and on caution ahead of US nonfarm payrolls data later in the day. SGX Nifty was trading 6.5 points down, indicating to have a flat start on the Indian bourses.

Commodity cues

Crude oil prices tumbled more than 2% on Thursday to below $89 a barrel as a stronger dollar and weaker US equities deterred buyers. Crude for February delivery declined by $1.92, to settle at $88.38 a barrel.