Flat to negative start likely on Spain debt woes

Headlines for the day:

Kaiser, Caldwell acquire stake in BSE

GTL likely to take 26% stake in Qualcomm's BWA foray

Real estate projects boom in tier-II and tier-III cities

Events for the day:

Major corporate action

GDP for Q4 to be announced today
Zensar Technologies board to consider bonus issue
Marathon Nextgen board to consider bonus issue
Results: Tata Communications
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European shares closed lower on Friday, snapping two consecutive days of gains ahead of the weekend, with British Petroleum down over uncertainty as to whether it has managed to plug its Gulf oil well and other energy stocks tracking a fall in crude CLc1 prices.

The US stocks fell on Friday, capping off their worst month in over a year as a downgrade by Fitch of Spain's credit rating reignited worries about euro-zone debt issues.

In today's trade, the Asian markets were trading mixed. At the time of writing this report, SGX Nifty was trading 6 points lower.

Indian Indices

The Asian stock markets were mixed on Monday, with sentiment weighed by concerns that the euro zone's debt crisis could spread after Spain's ratings downgrade. The investors were cautious after news that Fitch Ratings had cut Spain's sovereign debt rating to AA+ from AAA, which sent Wall Street stocks lower on Friday. Owing to the lack of support from the global indices and following the Asian cues, the Indian markets are expected to have a gap-down opening.

Also going in to the session, the market is expected to remain volatile owing to the GDP for fourth quarter to be announced later today. The earning of Tata Communications is later to be announced today — the stock will be closely eyed.

Commodity cues

In the commodity space, the crude oil prices posted losses on Friday (May 28, 2010), with the Nymex light crude oil for the June series declined by $0.58 per barrel, whereas in the metals space, the Comex Gold for the June series rose by $0.30 and the Comex Silver for the June series was down by $0.05 to a troy ounce respectively.

Daily trend of FII/MF investment in equities

On May 28, 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs10.30 crore, whereas the domestic mutual funds, on May 25, 2010, were the net sellers of the stocks to the tune of Rs432.80 crore.