Flat start likely; RBI policy eyed

Today’s opening is likely to be on a flat note as cautious trade is expected ahead of the RBI policy.

Headlines for the day

R-Cap in talks to buy majority stake in Bloomberg UTV

IOC cuts domestic jet fuel prices by Rs920/kl

JSW Energy ups stake in S African coal firm

RBI reduces net open position limits for dealers in FX mkt

Oil companies reduce ATF price by 1.3%

Kingfisher to cut flights to Himachal



Events for the day

RBI's mid-quarter monetary policy review

Indian indices

All eyes will be on the RBI's mid-quarter monetary policy review today. After weak IIP numbers and high inflation data, it is widely expected that RBI could soften its stance and could look forward toward monetary easing now or in near future. The broad consensus is that it may not hike key rates further. RBI has raised rates 13 times since March 2010 to tame inflation.

Today’s opening is likely to be on a flat note as cautious trade is expected ahead of the RBI policy. Volatility may remain high today. A continuous decline in rupee has added to the problems of the government which is fire-fighting high inflation and a slowdown in economic growth. So, rupee will remain in focus.

Daily trend of FII/MF investment in equities

The FIIs have been net sellers of the Indian stocks to the tune of Rs55.80 crore on December 15, 2011. The domestic investors have purchased Indian stocks worth a net of Rs203.10 crore on December 14, 2011. The data is as per SEBI website.

Global indices

The European shares rose in thin volume on Thursday (December 15, 2011) as technical factors pointed to oversold levels, while a Spanish bond auction produced good demand and U.S. data helped improve sentiment on the global economy.

The US stocks gained on Thursday, snapping a three-day losing streak, after investors took heart from stronger US economic data, but finished off session highs after another warning about Europe's sovereign-debt crisis.

The Asian indices edged up on Friday (December 16, 2011), as signs of strength in the US economy temporarily broke through gloom over the European debt crisis that had driven a sell-off in riskier assets over the past three days. SGX Nifty was trading 4 points lower.

Commodity cues

US Crude Oil fell a second straight day on Thursday in light volume trading, giving up early gains as investors remained cautious about prospects for economic growth in Europe and China.