Equities set to open higher on EU plan

Headlines for the day:

Supreme Court verdict won't affect any project of R-Infra

Tata may reject Mumbai supply order on R-Infra

Auto sales grow highest in a decade

Events for the day:

Major corporate action

Ex-date for interim dividend of GMM Pfaudler and Hikal
Results: Kotak Mahindra Bank, Ranbaxy Laboratories , Hindalco Industries
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European shares posted their biggest daily rise in more than 17 months on Monday after European central banks started to buy euro zone government bonds under a $1 trillion rescue package.

The US stocks racked up their biggest one-day gain in over a year on Monday as an agreement on a $1 trillion emergency rescue package from the European Union quelled fears a new credit crisis would derail European economies.

In today's trade, the Asian markets were trading in the positive territory. At the time of writing this report, SGX Nifty was trading 5 points higher.

Indian markets

The markets around the globe had made an amazing recovery from a sharp sell off last week, as relieved investors see the massive $1 trillion rescue package cobbled together by global policymakers to bail out debt-laden European Union (EU) countries.

Thee Asian markets were trading higher in their early trade, with modest gains as investors focused on the implementation of the European Union's bail out package. The Indian markets are expected to have a gap-up opening, following the track set by the global peers. Ahead through the session, markets are expected to trade in a positive bias. The foreign institutional investors (FIIs) continue to be the net sellers as the case in the entire last week on the back of profit booking.

The earnings of Kotak Mahindra Bank, Ranbaxy Laboratories and Hindalco Industries are later to be announced today — the stocks will be closely eyed by the investors.

Commodity cues

In the commodity space, the crude oil prices inched on Monday, with the Nymex light crude oil for the June series rose by $1.69 per barrel, whereas in the metals space, the Comex Gold for the June series declined by $9.60 and the Comex Silver for the June series was down by $0.10 to a troy ounce respectively.

Daily trend of FII/MF investment in equities

On May 10 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs1589.90 crore, whereas the domestic mutual funds, on May 07, 2010, were the net sellers of the stocks to the tune of Rs13.70 crore.