Markets may fall at start on euro zone downgrades

The markets are expected to face pressure from the worsening eurozone crisis after a series of national ratings downgrades by Standard & Poor's that could further delay a European recovery.

Headlines for the day:

RIL plans to pick 26% stake in leading cable operators

DCB defers Rs150 crore QIP plan to June
Government owes Rs110 crore to Air India for VVIP flights

SBI trims housing loan processing fee

FIIs invest Rs15,000 crore in debt, equities this month



Events for the day:

Results: ING Vysya Bank, RIIL, South Indian Bank, Tata Elxsi

Indian indices

It will be an important day for the Indian markets as inflation numbers for December 2011 will be out. The inflation number will be keenly watched, as this would offer the first clue about the Reserve Bank of India (RBI)'s likely action in its forthcoming policy review meeting on January 24, 2012. Earnings will also continue to remain in focus.

The markets are expected to begin a new week on a negative note led by weak global cues in reaction to the ratings downgrade in euro zone. Standard & Poor's stripped France of its prized triple-A status and cut the credit ratings of eight other euro zone countries, dealing another blow to the region's efforts to end the debt crisis. The markets are likely to remain under pressure today.

Daily trend of FII/MF investment in equities

The FIIs have been net buyers of the Indian stocks to the tune of Rs525.40 crore on January 13, 2012. The domestic investors have sold Indian stocks worth a net of Rs421.30 crore on January 12, 2012. The data is as per SEBI website.

Global signals

The European stock markets fell on Friday (January 13, 2012), after sources said credit rating agency Standard & Poor's was set to go through with a long-mooted downgrade of several euro zone countries, weighing on sentiment for riskier assets such as equities.

The US stocks finished lower on Friday in wake of a Standard & Poor's decision to downgrade France, stripping the country of its coveted AAA rating.

The Asian shares slipped on Monday (January 16, 2012) on heightening worries that the mass sovereign debt rating cuts by Standard & Poor's would further aggravate euro zone funding difficulties and recapitalization, threatening to derail progress in resolving the debt crisis. SGX Nifty was trading 46 points lower, indicating a weak opening for the Indian markets.

Commodity cues

US Crude oil fell on Friday as appetite for riskier assets was weighed after ratings agency Standard and Poor’s downgraded the sovereign credit ratings of nine euro zone countries, including France.