Markets expect a flat start

Headlines for the day:

Banks may defer walking in RBI's footsteps

RIL may invest in Chesapeake shale asset

PSUs to get 42% gas for power sector



Events for the day:

Major corporate action

Eros International Media IPO opens today
Ex-date for dividend DLF, GMDC
Ex date for final dividend of Phoenix Mills
For more events and news, log on to Sharekhan.com

Updates on global events

The US continuing claims for the week ended September 04, 2010 stood at 4,485,000 as compared to 4,569,000 seen in the previous week.

The US initial claims for the week ended September 11, 2010 stood at 450,000 as compared to 453,000 seen in the previous week.

Pre-market report

Indian indices

The Indian markets have performed well in three out of four trading sessions of the week, the Sensex and the Nifty have gained 617 points (3.28%) and 189 points (3.35%) respectively on good industrial production data and advance tax numbers.

In today’s trade, the Indian markets may have a flat start tracking marginally higher Asian markets and are expected to follow its global counterparts for direction. The good advance tax numbers of India Inc’s will flow even today, which may also decide the further course of the market.

The government has finalised a gas allocation policy for the power sector, under which 42% of the domestic gas would be reserved for companies controlled by the centre and the states. This news may keep the power stocks in focus.

Daily trend of FII/MF investment in equities

The FIIs bought shares worth a net of Rs2,360.10 crore on September 16, 2010, much higher than Rs1,723.30 crore on September 15, 2010. The domestic investors have sold the Indian stocks worth a net of Rs487.10 crore on September 15, 2010.

Global signals

The European shares closed lower on Thursday (September 16, 2010), as investors worried that high US jobless numbers, despite falls in weekly claims, and disappointing British retail sales could signal a slowdown in the pace of economic recovery.

The US stocks were little changed on Thursday as mixed economic data and a cautious forecast from economic bellwether FedEx kept the market locked in its recent tight trading range.

The Asian markets were trading in the green tracking marginal gains on the Wall Street. SGX Nifty was trading 1 point up, indicating to have a flat start on the Indian indices.

Commodity cues

Crude oil futures prices dropped for the third straight day on Thursday as a scheduled restart of a major pipeline rekindled oversupply concerns in the world's biggest oil consumer, as the crude oil futures for October delivery down by $1.45, to settle at $74.57 a barrel.