The Indian indices are expected to witness a watchful beginning as the global cues are not very supportive. US indices witnessed a mixed trading in post-Christmas session on Friday, and the Asian markets are trading mixed in early hours of trade today. Among US indices, Dow Jones industrial average gained 63.56, or 0.74% while S&P 500 index fell 15.08, or 1.7% and the Nasdaq ended lower by 34.08, or 2.17%.

The Asian markets too are not in a good shape this morning with major indices trading in the red. Nikkei currently trading at 8,669.94 down by 69.58 points, Hang Seng was trading at 14,119.30 down by 64.84 points and Shanghai Composite was down by 30.08 points to 1,821.44 9:30. On the other hand, Straits Times was trading at 1,736.96 up by 11.35 points.

But on the domestic front there are some signals that might enkindle the market in the later trades. The second tranche of the economy stimulus package is expected to be announced today while the market is also expecting an RBI action to cut CRR and Repo rates.

Crude has begun to boil again as OPEC members committed to production cuts that supported prices on Friday in light trading. A weaker dollar and geo-political tensions in the Gulf region also added to the rally.

Light, sweet crude for February delivery rose $2.36, more than 6%, to close at $37.71 a barrel on the New York Mercantile Exchange. Trading was closed Thursday for Christmas.

In London, February Brent crude gained $1.76 to settle at $38.45 a barrel on the ICE Futures exchange.

OPEC is expected to meet again in Kuwait City on January 19, 2009, to discuss further production cuts. The group’s next official meeting is March 15 in Vienna.