Weak global cues may drag markets at start

Today’s opening is expected to be on a weak note on account of losses in the global markets.

Headlines for the day:

RIL may replace ONGC as biggest profit maker

Scooters India's stake sale likely to be over in 2011-12

Drug approvals halt as regulator puts in new clearance system



Events for the day:

Major corporate action

CIL Nova Petrochemicals & Sanghvi Forging & Engineering to list today
Transcorp International board to consider stocksplit
Results: BHEL, Dish TV India, GAIL, Tata Chemicals
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

The economic recovery and macro picture do seem to indicate a more protracted slow economic recovery long term. Fitch pushed Greece's credit rating deeper into junk territory and warned of further downgrades if a credible plan to resolve the country's debt crisis was not found.

Global weakness may drag the Indian markets lower in the opening trade. Lack of positive drivers in the markets may push buyers to the sidelines. Major companies’ results can have a considerable bearing on the markets. With the expiry of May contracts this week, the markets could get volatile.

Sanghvi Forging and Engineering is going to list its equity shares on exchanges today. It has fixed its issue price at higher end of price band of Rs 80-85 a share. CIL Nova Petrochemicals will also be listed today.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs7.10 crore on May 20, 2011. The domestic investors have bought Indian shares worth a net of Rs28.20 crore on May 19, 2011.

Global signals

The European shares fell on Friday (May 20, 2011), with investors reducing their exposure to riskier assets as concerns over the euro zone debt crisis intensified after ratings agency Fitch downgraded Greece's credit rating.

The US stocks fell on Friday on euro-zone debt worries that could spill over into next week's trading with a bearish note, while retailers lost ground after a weak profit outlook from Gap.

All the Asian stocks were trading with heavy losses on Monday (May 23, 2011). SGX Nifty was trading 54 points lower; this may lead Indian markets for a weak start.

Commodity cues

The crude oil rose on Friday paring back some of the losses incurred in the previous session after disappointing US economic data dampened market sentiment.