Markets may see a soft start on Japan’s credit downgrade

The Indian stock markets expect a soft opening owing to un supportive Asian cues after Moody’s downgraded Japan’s debt rating.

Headlines for the day:

RBI wants changes in law before new bank licences
India Inc raises Rs60,950 crore overseas for infra boost
Realty firms mull legal action against CCI order



Major corporate action

Results: Mphasis, Moserbaer India
Ex-date for final dividend of Maruti Suzuki India, Orient Ceramics & Industries
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Indian indices

After rising for two straight sessions, the Indian markets are likely to fall today at the start on account of negative Asian cues after Moody's Investors Service downgraded Japan's credit rating. However, strong overnight gains on the Wall Street may boost the sentiment.

In the near term, the market is likely to remain volatile due to expiry of August series derivatives contracts.

The key benchmark indices — the Sensex and the Nifty have gained around 350 and 100 points respectively till now from its Friday’s closing.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs766.10 crore on August 23, 2011 as compared to the net sell of Rs1,281.10 crore on August 22, 2011. The domestic investors have bought Indian shares worth a net of Rs136.5 crore on August 22, 2011. The data is as per the SEBI website.

Global signals

The European stock markets ended higher on Tuesday (August 23, 2011) on better-than-expected eurozone and Chinese economic data, although gains were capped by weak German sentiment and lingering fears of a return to recession.

The US markets surged on Tuesday on speculation that Federal Reserve Chairman Ben Bernanke this week would signal new help for the economy, giving investors hope a four-week rout was nearing an end.

The Asian markets were trading lower after Moody's Investors Services downgraded Japan's sovereign debt rating. SGX Nifty was trading 25 points down, pointing for a soft start on the Indian bourses.

Commodity cues

Crude oil prices rose on Tuesday on hopes that the Federal Reserve might indicate fresh stimulus measures later this week, with oil also drawing support from fighting in Libya and disrupted Nigerian exports.