Sensex, Nifty to open on a weak note

Global cues are weak for now. Focus will be on how corporate earnings pan out in the coming weeks. Investors may do well to remain cautious at these levels after a strong recovery in last three weeks and adopt a stock-specific approach.

The main indices may have gained around 4% in the last couple of weeks even as it closed lower for the year but the start to this week appears to be lackluster. China Caixin Manufacturing PMI for Dec was lower than expectations at 48.2 as operating conditions faced by Chinese goods producers continued to deteriorate in December. Production declined for the seventh time in the past eight months and data suggested that client demand was weak both at home and abroad, with new export business falling for the first time in three months in December.

The outlook is a weak start. Global cues are weak for now. Focus will be on how corporate earnings pan out in the coming weeks. Investors may do well to remain cautious at these levels after a strong recovery in last three weeks and adopt a stock-specific approach.  The combined market valuation of eight of the top-10 most valued Indian companies surged up by Rs. 38,355.66 crore with Coal India and ONGC emerging as the biggest gainers.

Chief Economic Advisor Arvind Subramanian reportedly said that  India has emerged as the world's fastest growing economy notwithstanding global demand slowdown and four droughts. Arvind Subramanian said that there has been improvement in quality of spending toward capital, fiscal consolidation at central and state levels.

The Bombay Stock Exchange (BSE) will today auction investment limits for foreign investors to buy government debt securities worth Rs.7,396 crore.

Cement stocks will be in focus.  Average cement prices declined by 7.3% in December 2015 compared to the same month in the previous year mainly due to weak demand, says a research report by a leading Mumbai-based broking firm. Cement prices in the northern and western regions have witnessed maximum correction of 10-12 per cent on a year-on-year (YoY) basis.

Iran’s proposed increase in oil production after sanctions are removed will enter the market “gradually” and won’t pressure international crude oil prices, Iranian oil ministry said on Saturday. Iran has the potential to boost its oil production by 500,000 barrels a day within a week of sanctions being lifted, and by 1 million barrels shortly after, according to Shana news agency.

Orbit Corporation's dues worth INR 528 crore are in the process of being restructured, including Rs. 87 crore due to LIC Housing Finance since 2013, reports a financial newspaper. Orbit Corp’s overdue interest bill at the end of March 2015 was Rs. 262 crore. Its total debt at the end of March 2015 was Rs.950 crore.

The recent increase in excise duty on petrol and diesel - three in a row - will help the Government mop up an additional INR 10,000 crore in FY16.  The Government has raised excise duty on petrol and diesel three times in last two months and by seven times since November 2014.

A study by international real estate consultant JLL has named Delhi and Mumbai in the list of world's top-30 most powerful, productive and connected cities. Mumbai has been ranked 22nd while Delhi is placed at No. 24.

India's foreign exchange reserves rose by $ 943.4 mn to $ 352.050 bn during the week ended December 25, according to RBI data.

Capital markets regulator Sebi directed Astha Green Energy Ventures India and its directors to refund Rs. 43.77 crore to investors along with an interest of 15%, says report.