Markets expect a negative start; F&O expiry eyed

Renewed concerns about the euro zone's financial health may weigh on the Indian markets in the opening trade.

Headlines for the day:

GMR completes 30% stake sale in Singapore arm to Petronas

Mahindra raises XUV500 prices by up to Rs55K

RIL slips below Infy in market-weight game, again

DLF, partner sell Pune IT SEZ to Blackstone for Rs810 cr

TVS to launch automatic transmission 2-wheelers in 2013

ICICI, IDBI Bank up NRE deposit rates



Events for the day

F&O expiry for December

Release of weekly inflation data

Indian indices

Tracking weak global cues on renewed concerns over the euro zone sovereign debt crisis, the Indian markets may open the trade on a negative note. The focus will be on Europe as markets are now waiting to see the outcome of a sale of up to 8.5 billion euros of Italian bonds later in the day. Italy faces around 100 billion euros in bond redemptions and coupon payments between January and April.

Trading volume is likely to remain thin. Volatility may remain high due to F&O expiry for December and outcome of weekly inflation numbers today.

Daily trend of FII/MF investment in equities

The FIIs have been net buyers of the Indian stocks to the tune of Rs363.70 crore on December 28, 2011. The domestic investors have purchased Indian stocks worth a net of Rs6.70 crore on December 27, 2011. The data is as per SEBI website.

Global signals

The European shares fell on Wednesday (December 28, 2011), with auto makers the steepest fallers as investors cashed in on a recent rally.

The US stock markets declined in thin year-end trade on Wednesday, after a successful Italian bond auction failed to ease concerns over the debt crisis in the euro zone ahead of a ten-year debt sale on Thursday.

The Asian stock markets fell on Thursday (December 29, 2011), ahead of an Italian debt sale that could prove challenging in thin volumes. SGX Nifty was trading 29 points lower.

Commodity cues

US Crude Oil prices fell on Wednesday, snapping a string of six straight sessions of gains as part of a broad sell-off across commodities and equities.