Markets may begin in green

The domestic markets head towards a positive start as global indices look good.

Headlines for the day:

SAIL to set up steel plant in Indonesia

Spice Global may float IPO by year-end

Urea to come under NBS from April 1



Events for the day:

Major corporate action

India’s weekly inflation to be announced today

India's F&O Expiry for January
Results: HPCL, HDFC Bank, Tata Chemicals, JSW Steel
Bhagyanagar India and FDC board to consider buy-back of shares

Pre-market report

Indian indices

The Indian markets reacted negatively to the Reserve Bank of India's move on Tuesday (January 25, 2011) as inflation worries spooked the sentiments. Today there is another event, which will decide the market sentiment is the expiry of January series derivatives contracts. Weekly inflation numbers will also be out today. Volatility has remained extremely high and is expected to persist due to expiry.

The start is expected to be in the green zone as global markets look good. Quarterly results of the corporates will continue to flow; this may also add to the volatility.

Dalmia Bharat Enterprises and Midvalley Entertainment will be listed on the bourses today.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian shares worth a net of Rs194.90 crore on January 25, 2011 as compared to Rs37.60 crore on January 24, 2011. The local investors have purchased Indian shares worth a net of Rs263.20 crore on January 24, 2011.

Global signals

The European equities hit a one-week closing high on Wednesday (January 26, 2011) as the US President Barack Obama's proposal of corporate tax cuts boosted market sentiment, while stronger metals on hopes of improving demand helped miners.

The S&P 500 closed at a 29-month high on Wednesday led by gains in tech and commodity shares, as investors largely ignored the US Federal Reserve's lukewarm economic assessment.

The major Asian markets were trading on a mixed note. SGX Nifty was trading 24 points higher; this may lead to a positive opening for the domestic markets.

Commodity cues

The US crude rallied above $87 a barrel on Wednesday, as President Barack Obama's call for lower corporate taxes spurred hopes for higher profits and greater energy demand.