Markets expect a weak start; RBI’s policy eyed

Tata Steel plans Rs1,500-crore perpetual bond sale
TVS plans India's cheapest motorcycle
Jyothy Labs set to snap up Henkel India

Events for the day:

Major corporate action

RBI’s mid-quarter policy review will be out today
Ex-date for right issue of Central Bank of India


Pre-market report

Indian indices
One would not know the extent to which the disruption in Japan is set to continue and uncertainties arising from the crisis are disturbing global sentiments. Intensifying political tensions in the Middle East have pushed crude oil prices higher; this is also a worry. Indian markets are sensitive to oil prices so one should keep an eye on it. Fear is the only factor driving the markets with so many risky events. With the panic setting- in again after one-day relief, the Indian markets are expected to begin the trade on a weak note tracking negativity across the globe.
Events back home may also provide some direction in later trade. Weekly inflation numbers will be announced today. Inflation is always a concern and Reserve Bank of India (RBI) is struggling to control it. In its mid-quarter policy review scheduled today, a 25 basis points hike in the policy rates is expected. RBI has raised key policy rates seven times in one year from March 2010.
Oil prices and rate hike along with inflation numbers may increase market volatility.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian equities worth a net of Rs219.40 crore on March 16, 2011 as compared to net sell of Rs507.10 crore on March 15, 2011. The domestic investors have sold Indian shares worth a net of Rs84.90 crore on March 15, 2011 as compared to net buy of Rs32.10 crore on March 14, 2011.

Global signals

The European shares extended a losing run to six days on Wednesday (March 16, 2011) as worries about the nuclear crisis in Japan and unrest in the Middle East intensified, and banks fell after Portugal's sovereign debt was downgraded.

The S&P and Nasdaq dropped into negative territory for the year on Wednesday in a crush of trading on the perception Japan's nuclear crisis would continue to be a headwind for equities.

All the Asian indices were trading lower. SGX Nifty was trading 53 points down, suggesting for a weak start on the Indian bourses.

Commodity cues

Crude oil prices rose 2% from near three-week lows on Wednesday as a crackdown on protesters in Bahrain reignited worries unrest in the Middle East could further hit oil supplies.