Pre Market - Nov 5 2009

Headlines for the day

RIL's Jamnagar refineries to buy Cairn crude - Business Standard

After 12 years, credit grows in single digits - Business Standard

Tata Motors plans 25K Jaguar XJs a year- Business Standard

Rashtriya Chemicals forays into cement distribution - Business Line

Tata Steel to run Corus facilities at full capacity by year-end - Business Line

Government may tweak FDI norms affecting banks classification - Mint

Events for the day

Major corporate action:

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Ex-date for interim dividend of Birla Corporation, Crisil, DCM Shriram Consolidated, Dynamic Technologies, Brahmaputra Infraprojects, KCP Ltd., M.R.F., Mindtree, REI Agro, Relaxo Footwear and ex-date for dividend of Visaka Industries and Voith Paper.
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Ex-date for the stock split of Madhucon Projects from Rs2 to Re1.
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Inflation

Market Commentary

Global signals

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The European indices rose sharply with gains of close to 1.50% each on the back strong Asian cues, the heavy buying in the financial and auto stocks doubled with more evidence of economic recovery in the US, ahead of Federal Reserves statement.

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The stocks in the US rose in the early trades on the back of strong and positive global cues, however it lost stem in the closing sessions and ended mixed after the Federal Reserves kept the interest rates unchanged. This was despite the labor market report showing signs of slowdown in the layoffs and also the confidence expressed by Federal Reserves in the economic recovery. The Dow and S&P 500 closed marginally higher with gains of 0.30% and 0.10% respectively, while Nasdaq fell marginally with loss of 0.09%.

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In today's trade, all the major Asian markets were trading in the marginally red with the loss in the range of 0.07%-1.15% each, wherein Nikkei 225 fell the most. Even SGX Nifty opened weak, at the time of writing this report was trading lower with loss of 30 points over its previous close.

Indian markets

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Sensex in todays trade may open lower owing to the weak signals from the Asian market and it may again remain volatile and range-bound in the days trade.

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Among the local indices, the Nifty could test the 4750- 4800 range on the up side, while on the down side it could find support at 4650 and 4550. The Sensex is likely to get support at 15600 and may face resistance at 16000.

Indian ADR's

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Among the Indian ADRs trading on the US bourses, each ADR ended the day in green with gains in the range of 0.67%- 7.19%, with ICICI Bank gaining the most.

Commodity cues

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In the commodity space, Crude oil prices continued to rise for the third day, with the Nymex light crude oil for December series surging by $0.80 to close at $80.40 a barrel.

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In the metals space, the Comex Gold for December series surged by $2.10 to settle at $1087.00 a troy ounce, while Comex Silver for December series rose by $0.22 to settle at $17.40 a troy ounce.

Daily trend of FII/MF investment in equities

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On November 04, 2009, FIIs were the net sellers of the Indian Stocks in the tune of Rs300.80 crore (with the gross purchase of Rs2188.10 crore and gross sales of Rs2488.90 crore).

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While the Domestic mutual funds mutual funds, on November 03, 2009, were also net seller of the stocks in the tune of Rs30.30 crore (with gross purchase of Rs879.80 crore and gross sales of Rs910.10 crore).