Markets may open on a negative note

Asian shares have also tanked heavily in early morning trades, even as the latest Chinese data suggests that inflationary pressures reduced sharply in the month of November amid falling food and commodity prices,. The consumer price index rose 4.2% sliding off from October's 5.5% increase.

The Indian companies ADR’s traded in the American markets have closed on a negative note indicating a weak day ahead for them in the Indian markets. In the IT space, Wipro was up by 0.39 per cent, Patni was down by 0.87 per cent and Infosys was down over 4.33 per cent. In the Telecom space, MTNL was unchanged and Tata Communication was down 3.93 per cent. In the banking space, HDFC Bank was down 2.21 per cent and ICICI Bank was down 5.57 per cent. In other sectors, Tata Motors was down 3.99 per cent, Sterlite was down 5.36 per cent and Dr Reddy’s Laboratories was down 1.17 per cent.

Back home, food inflation for the week ending November 26, fell sharply to 6.6 per cent as against 8 per cent in the previous week. The same was recorded at 8.93 per cent in the corresponding period last year. Inflation in the overall primary articles category stood at 6.92% during the week ending November 26, as against 7.74% in the previous week. Fuel inflation remained unchanged at 15.53 per cent. All eyes will be now on the headline inflation data and industrial output data expected next week. These numbers could provide the final cues on RBI’s possible stance in its policy review scheduled for 16th Dec 2011.

According to certain media reports, the Mumbai service tax department has frozen some of the bank accounts of Kingfisher Airlines for non-payment of the levy to the tune of Rs 70 crore. This is the second time within a month that its account has been frozen by the department. The Kingfisher account was first frozen for two days in the first week of November and it was only after an assurance from the airline officials on depositing the dues in three installments, that the department lifted its order.

In what may bring some respite for new telecom service providers, who have been struggling to stay alive in a highly competitive industry, TRAI has given an assurance that it will come out with a solution to device an exit policy for such players. The exit policy will allow new players, who wish to quit the crowded Indian telecom industry to surrender their spectrum and licenses. Currently, a pan-India operator has to pay Rs 1,650 crore for a licence (along with the start-up spectrum of 4.4 Mhz) but has no option to surrender it and get their money back. Many new operators have either not launched services or have limited services available. The introduction of an exit policy will give some respite to these players.

After OVL showing keen interest in importing LNG from Russia, it’s time for Petronet LNG. Aaccording to govt. sources, it is believed that the company is on the brink of finalizing an agreement for sourcing liquefied natural gas from Russia under a pact with energy giant Gazprom. In fact in June, Gazprom had signed a preliminary deal with Petronet for the supply of 2.5 million tonnes of LNG annually. India is the world's eighth-largest importer of LNG and the widening gap between demand and supply could mean a potential five-fold increase in imports in the next decade.

Expect some action in realty stocks today as certain media reports suggest that the department of commerce and industry has allowed realty developers to sell their stake partly or fully to other promoters and firms, including foreign ones. In other words, foreign real estate players will now be able to own SEZs in India, even though there are restrictions on FDI in real estate.

Shares of Britannia should witness some action today as reports have come in that the company plans to ‘unlock value’ in its sprawling seven acres HQ in the city of Bangalore. In other words, the company plans to turn the property into a commercial and residential complex which could fetch a handsome value