Gap-down start likely; RIL in focus

The Indian indices are expected to open on a weak note on account of negative global cues.

Headlines for the day:

RBI proposals may drive MFI consolidation

AV Birla set to buy US firm for $900 million

M&M, Sundance tie up to promote Indian cinema



Events for the day:

Major corporate action

Tata Steel FPO closes today
Results: Bank of India, Corporation Bank, BHEL, Wipro
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

The trading on the Dalal Street is expected to start on a weak note tracking negative global markets. The Indian indices will keenly watch the results of the top-notch companies so as to get some support. Uncertainty is expected to remain owing to unwarranted fears over China interest rate hike.

The companies like Punjab National Bank, Tech Mahindra, Bharat Heavy Electricals, Hindustan Construction Company, Corporation Bank, Wipro, ITC, Mahindra & Mahindra Financial Services, Indianbulls Financial Services, Bank of India. Dish TV India, IFCI, Reliance Industries will declare results; stocks will be eyed.

Also, Tata Steel’s follow-on public offer (FPO) closes today and the stock will remain in action.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs208.10 crore on January 20, 2011 as compared to the net buy of Rs176.40 crore on January 19, 2011. The domestic investors have sold Indian shares worth a net of Rs1.50 crore on January 18, 2011.

Global signals

The European shares fell on Thursday (January 20, 2011), with miners among the casualties, as investors worried that China will have to undertake further monetary tightening to combat inflation after strong growth numbers.

The US markets fell on Thursday as lackluster tech and materials earnings failed to live up to heightened expectations, threatening to short-circuit a seven-week run.

The Asian markets were trading lower except Strait Times and Shanghai Composite. SGX Nifty was trading 41 points lower, suggesting for a negative start on the Indian bourses.

Commodity cues

Crude oil prices slumped about 2% on Thursday on a sell-off sparked by an unexpected rise in US crude stockpiles and worries that China might tighten monetary policy to fight inflation.