Flat to positive start likely, IIP nos eyed

Headlines for the day:

New 2G norms to make Govt richer by Rs11,200 cr

GMR Energy to raise Rs450 cr from IDFC Private Equity

Tata Power firm on Mumbai refusal, formal reply on Wednesday

Events for the day:

Major corporate action

IIP numbers to be announced today
Ex-date for dividend of Kansai Nerolac, Allcargo Global
Results: Bajaj Auto, Bajaj Holdings, Thermax
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European shares slipped on Tuesday, led lower by banks, over doubts the massive rescue plan which boosted stocks in the previous session was a long-term solution and whether Greece can deliver budget deficit cuts.

The Dow and the S&P 500 fell in a volatile session on Tuesday as fears that a $1 trillion bailout for Europe won't solve the region's deep-seated problems blunted an improving U.S. economic picture.

In today's trade, the Asian markets were trading in a mixed note. At the time of writing this report, SGX Nifty was trading 13.5 points higher.

Indian markets

As global markets moved from euphoria over the $1 trillion European Union rescue package, to concern about the problems that still remain in Europe. The concerns about whether European governments are prepared to implement harsh austerity measures, and whether the package is merely a short-term fix, pushed US and European stocks lower after they posted their biggest one-day gain in a year on Monday.

The Asian were trading in a mixed note after an overnight fall on Wall Street as sentiment turned upbeat on easing worries about the eurozone's debt crisis. Taking the lead from the mixed Asian cues and worries across the globe, the Indian markets are set for a cautious start with a flat to positive note.

With the index of industrial production (IIP) numbers to be out today and is expected to be robust, the market participants will be closely eying the announcement of this data and the market is expected to remain volatile.
Monthly inflation figures will be announced later in the week. The monsoon will be a key variable over the next few weeks and even months, which will give the direction to the markets.

The earnings of Bajaj Auto, Bajaj Holdings, Thermax and Mangalore Refinery & Petrochemicals 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 slipped on Tuesday, with the Nymex light crude oil for the June series down by $0.43 per barrel, whereas in the metals space, the Comex Gold for the June series rose by $19.50 and the Comex Silver for the June series was increased by $0.74 to a troy ounce respectively.

Daily trend of FII/MF investment in equities

On May 11, 2010, the foreign institutional investors (FIIs) were the net buyers of the Indian stocks to the tune of Rs697.40 crore, whereas the domestic mutual funds, on May 10, 2010, were the net buyers of the stocks to the tune of Rs123.50 crore.