Markets likely to get a gap-down start

Headlines for the day:

Telcos move TDSAT over Trai proposal

RIL may pay Rs9,000 cr to RNRL: Experts

FMCG firms to decide on prices after monsoon starts

Events for the day:

Major corporate action

Ex-date for final dividend of Orbit Corporation
Results: Bank of Baroda, Tata Tea, Jai Corp
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European shares rose on Monday, with miners recouping losses from the previous week on a strong demand outlook for metals, but gains were limited by worries that the euro zone's debt crisis could hamper the bloc's growth.

The US stocks slid on Monday, driving the Dow to its lowest level since February 10 as fresh signs of Europe's banking problems emerged.

In today's trade, the Asian markets were trading on a negative note. At the time of writing this report, SGX Nifty was trading 42.5 points lower.

Indian Indices

The concerns about Europe's banking system continued to weigh on markets, after the Bank of Spain took over a small savings bank, CajaSur, over the weekend, increasing anxiety among investors worried about debt problems spreading throughout financial markets, as the investors sold the euro and stocks to be aside from the current market scenario.

The Asian markets were lower in their early trade on renewed worries over Europe's debt problems. Following the weak sentiments led by the global peers, the Indian markets are expected to open lower and expected to remain volatile for the day ahead of F&O expiry this week, weak global sentiments and the Europe's debt problems, which still sustains.

The earnings of Jai Corp, Hindustan Unilever, Tata Tea, Power Grid Corporation of India, Nagarjuna Construction Company. and Aban Offshore are later to be announced today — the stock will be closely eyed.

Commodity cues

In the commodity space, the crude oil prices inched up slightly in choppy trading Monday, as traders looked to the volatile stock market for cues, with the Nymex light crude oil for the June series rose by $0.17 per barrel, whereas in the metals space, the Comex Gold for the June series jumped by $18.10 and the Comex Silver for the June series was increased by $0.35 to a troy ounce respectively.

Daily trend of FII/MF investment in equities

On May 25, 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs1,476.80 crore, whereas the domestic mutual funds, on May 21, 2010, were the net buyers of the stocks to the tune of Rs287.60 crore.