Sensex set for a lower start

The Indian indices are likely to see a negative opening on the back of weak global cues.

Headlines for the day:

ICICI Bank gets mandate for AI loan re-financing

Oil min seeks lower duties to avoid price increase

Vedanta will not reapply for refinery expansion



Events for the day:

Major corporate action
India’s weekly inflation to be announced today, to view the update on this, kindly log on to Sharekhan.com at 12 pm.
C. Mahendra Exports to be listed today
Results: Yes Bank, Kotak Mahindra Bank, JSW Energy

Indian indices

It has been a very tepid week for the markets till now. Volumes don't look inspiring as the investor participation seemed to have dried up after the recent correction. Today, the global cues look weak, which may lead the Indian markets to start the trade on a negative note. Volatility may persist owing to quarterly results which are flowing in coupled with weekly inflation readings today. The markets seemed to be more worried about the governance deficit, high inflation and FII outflows. There is lot of choppiness in the markets so investors are expected to remain cautious.

Equity shares of diamond jewellery player, C Mahendra Exports, will list on the bourses today. It has set an issue price at higher end of price band of Rs 95-110 a share. The company raised Rs165 crore through issue of 1.5 crore equity shares, which was subscribed 2.78 times.

The earnings of major companies like Yes Bank, JSW Energy, Biocon, Wipro, Kotak Mahindra Bank and TVS Motors will be out today.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian equities worth a net of Rs176.40 crore on January 19, 2011 as against net sell of Rs53.70 crore on January 18, 2011. The domestic investors have sold Indian equities worth a net of Rs1.50 crore on January 18, 2011.

Global signals

The European shares ended lower after hitting 28-month highs on Wednesday (January 19, 2011), as disappointing figures from Goldman Sachs and a fall in the US housing starts hurt sentiment and prompted some investors to take profits.

The S&P 500 suffered its biggest decline in nearly two months on Wednesday as disappointing results from Goldman Sachs and Wells Fargo put a damper on the rally.

The Asian markets were trading in the negative terrain. SGX Nifty was trading 36.50 points lower, indicating towards a negative start for the Indian markets.

Commodity cues

Brent oil futures rose above $98 a barrel on Wednesday on supply concerns in the North Sea, but a stuttering economic recovery in the United States kept prices off the key $100 level and saw US crude ease for a second day.