Markets may see lower start as global risks rise

The start looks weak today on fears that Europe's debt crisis is still worsening. The outlook for the world economy is growing bleaker.

Headlines for the day:

SBI expects Rs 3,000-4,000 cr capital infusion this fiscal

Oil firms may hike petrol prices by 65 paise from Friday

Kingfisher, Air India make part-payment, accounts defreezed

RIL writes to FM against oil ministry

DLF set to ink Rs 900-cr Pune SEZ deal with Blackstone

Retail gets realty check: SMEs back multi-brand FDI



Events for the day:

Release of weekly inflation data

India Inc’s Q3 advance tax numbers

Indian indices

With the euro zone debt crisis showing no signs of abating as Europe slides into recession, the outlook for the world economy is growing bleaker. Investors across the globe dump riskier assets as surging bond yields in Italy highlighted fears that more immediate policy action for euro zone debt woes was unlikely.

The Indian markets may fall at start today tracking weak global sentiment on fears that Europe's debt crisis is still worsening. On the domestic front, weekly inflation data will be out today. Also, India Inc's third advance tax numbers will flow from today, which may provide cues on Q3 December 2011 corporate earnings.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs489.50 crore on December 14, 2011. The domestic investors have bought Indian shares worth a net of Rs78 crore on December 13, 2011. The data is as per the SEBI website.

Global signals

The European stocks slumped on Wednesday (December 14, 2011) and the euro hit lows versus the dollar not seen since January as investors witnessed euro-era high yields at Italy's latest bond auction, exacerbating concerns that the euro zone's sovereign-debt crisis is far from over.

The US stocks fell on Wednesday as weak commodity prices sparked a selloff in the energy and materials sectors and as a falling euro and high Italian bond yields kept Europe's debt crisis in focus.

The Asian stocks fell on Thursday (December 15, 2011) for a third day as a survey showed sentiment among Japan’s largest manufacturers deteriorated and growing funding stress in Italy stoked concern Europe is losing its fight to contain the debt crisis. SGX Nifty was trading 54 points lower, suggesting for a weak opening for the Indian markets.

Commodity cues

US Crude Oil tumbled more than 4% on Wednesday, the biggest drop in over two months as a commodities selloff led to breaches of key technical support.