Markets likely to get a flat to positive start

Headlines for the day:

DoT may reject Trai's 2G pricing recommendation

ABB plans Rs4,400 cr buyback offer to raise stake to 75%

Tata Power softens stand on power battle

Events for the day:

Major corporate action

Tarapur Transformers to be list today
Ex-date for bonus issue of SE Investments in the ratio of 3:1
Results: Chennai Petroleum
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European shares ended lower on Monday, with miners weak as metals prices fell on a strengthening dollar, while gains in defensive food producers and drug makers limited wider losses.

The US stocks staged a comeback in late trading on Monday as bargain hunters snapped up beaten-down shares, setting aside concerns that efforts to tackle the euro-zone debt crisis could stifle the global economy.

In today's trade, the Asian markets were trading on a mixed note, with bargain hunters inspired by the mild gains on Wall Street. At the time of writing this report, SGX Nifty was trading 17 points lower.

Indian markets

There is still a fair degree of concern as equities are still struggling to sustain their early gains, The Wall Street still looks pretty ordinary as the euro remains dull. All it will take is some worrisome comment out of Europe and the concern will flood back into the market. The Asian markets were mixed in early trading, after the Wall Street finished slightly higher in an erratic session. The Domestic markets are expected to have a flat to positive start owing to the mixed signals that are coming from the global markets.

Monsoon rains, vital to farmers and economic growth, arrived Monday ahead of schedule in the far-flung Andaman and Nicobar Islands in the Bay of Bengal, after the country suffered its worst drought in decades last year. As the monsoon is on time it will be a key variable over the next few weeks and even months, which will give the direction to the markets.

The earning of Chennai Petroleum is 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 to a 5-month low Monday, with the Nymex light crude oil for the June series down by $1.53 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 declined by $0.37 to a troy ounce respectively.

Daily trend of FII/MF investment in equities

On May 17, 2010, the foreign Institutional Investors (FIIs) were the net sellers of the Indian stocks to the tune of Rs204.90 crore, whereas the domestic mutual funds, on May 14, 2010, were the net sellers of the stocks to the tune of Rs205.50 crore.