Caution prevails; Markets may open in red

On the first day of the week, the markets head towards a negative start as escalating problems in Europe's debt crisis will continue to keep investors on their toes.

Headlines for the day:

Dr Reddy's Laboratories seeks denotification of SEZ at Medak.

Foreign funds infuse Rs2,500 crore this month.

FDI jumps 77% on M&A spree.

DLF moves Delhi HC against SEBI order to probe duping charges.

NMDC-Severstal steel plant likely by 2017

2G scam: CBI raids Airtel, Vodafone's office

Govt nudges LIC to buy 10% stake in Kingfisher



Events for the day

Ex-date for bonus issue of Amtek India
Ex-date for interim dividend of Shriram Transport Finance Co., Timken India

Indian Indices:

Markets this week will continue to be highly volatile on account of derivative contract expiry on Thursday (November 21, 2011). There is not much on the cards this week on the domestic front and markets would continue to take cues from the global bourses and, especially, from the crisis-hit euro zone.

Today’s opening is expected to be in the negative zone as escalating problems in Europe's debt crisis will continue to keep investors on their toes. Weakness across the globe may lead markets to extend losses today. The situation in Europe, with bond yields rising above 7% and American lawmakers waiting until the last minute to reach a deal are keeping the market jittery.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks to the tune of Rs160.70 crore on November 18, 2011. The domestic investors purchased Indian shares worth a net of Rs97.60 crore on November 17, 2011. The data is as per the SEBI website.

Global signals

The European shares ended at a six-week closing low on Friday (November 18, 2011) after comment from German Chancellor Angela Merkel cooled market hopes that Europe's largest economy would back monetary measures to tackle the euro zone debt crisis.

The worst week for the US stocks in two months ended with traders mostly sitting it out on Friday as they waited for politicians in Europe and the United States to tackle festering debt problems.

The Asian shares slipped on Monday (November 21, 2011), as uncertainty remained over how euro zone leaders would respond to mounting funding difficulties for European banks, while a crushing election win for Spain's center-right opposition raised hopes for reforms. SGX Nifty was trading 40 points down.

Commodity Cues

Crude oil rose on Friday as the dollar fell against the euro and currency movements drove oil markets in the absence of major economic data.

Gold prices stood at Rs28719, up by Rs90 or 0.31%.