Pre-market: Markets likely open on a soft note

The Indian markets are likely to witness another soft start today tracking global cues. US and European shares retreated on Monday and the euro slipped as investors cast doubt on efforts to tighten fiscal rules in the euro zone that aim to prevent the region's debt crisis from deepening.

The Dow Jones industrial average dropped 103.50 points, or 0.87 per cent, to 11,762.89. The Standard and Poor's 500 Index fell 14.48 points, or 1.19 per cent, to 1,205.18.

Asian stocks and the euro steadied on Tuesday, but sentiment remained fragile on concerns that efforts to contain the euro zone debt crisis were faltering and tougher rules to strengthen banks' capital would further undermine their profits.

Sentiment in Asia was already risk-averse, after the death of North Korea leader Kim Jong-il raised fears of regional instability and prompted investors to pull money out of riskier assets and into the safe-haven dollar on Monday.

MSCI's broadest index of Asia Pacific shares outside Japan inched up 0.1 per cent on Tuesday, Tokyo's Nikkei share average opened up 0.3 per cent, after hitting a new three-week low on Monday.

Back home, analysts suggest that the key levels to be watched for the Nifty on the downside are 4,590 – 4,570, and 4,640 – 4,655. At 720 am Indian Standard Time, the SGX Nifty was trading at 4589, down 25 points.

Among individual stocks, Orchid Chemicals and Pharmaceuticals could be in focus today on reports that the company has received 100 million dollar external commercial borrowing to redeem FCCBs.

Also keep a tab on Coromandel International that increased its stake in Sabero Organics to 67.75 per cent.

Muthoot Finance could also be in limelight today after announcing plans to raise up to 600 crore debt from public through a debenture issue, which will open for subscription on Thursday.