Libya woes may lead markets to start weak

Headlines for the day:

BP, Reliance in $7.2 billion deal
Irda wants life insurers to face 10% stake sale cap
Cairn changed stand on royalty: ONGC



Events for the day:

Major corporate action

Balrampur Chini Mills board to consider buyback
Ex-date for interim dividend of Geodesic, Ambica Cotton
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices
A rise in the level of violence between protestors and the government of autocratic Libyan leader Muammar Gaddafi led to a fall in the global indices. The geopolitical tensions have been rattling the markets, with the investors turning to safe haven gold which in turn pushed up silver higher.
Uncertainty over Libya unrest may lead the Indian markets to start today’s session on a negative note, tracking terribly weak Asian indices. Indian markets will trade on the basis of Asian cues owing to US markets being shut.

Reliance Industries Ltd (RIL) and BP yesterday announced a historic partnership between the two companies, constituting one of the largest foreign direct investments into the country. RIL-BP deal may provide some support to the markets. RIL stock will be in limelight.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian stocks worth a net of Rs244.50 crore on February 21, 2011. The domestic investors have bought Indian shares worth a net of Rs79.80 crore on February 18, 2011.

Global signals

The European shares fell sharply on Monday (February 21, 2011) after unrest in Libya fuelled concern over energy supplies and sapped investor risk appetite, with Italian stocks among the hardest hit.

The US markets were closed on Monday on account of the President Day.

The Asian stock prices fell on Tuesday (February 22, 2011) as markets watched the growing crisis in Libya. SGX Nifty was trading 60 points down, indicating to have a weak opening for the Indian indices.

Commodity cues

Crude oil prices rose as Libya unrest stokes supply fears.