Stocks to open lower on Europe debt concern

Headlines for the day:

JSPL bid for Ziscosteel rejected

NTPC plugging leakages in Tapovan project

SAIL plans 6 million tonne greenfield project

Events for the day:

Major corporate action

Weekly inflation to be announced today
Ex-date for stock split and bonus issue of Engineers India
Results: Union Bank of India, Punjab National Bank, Dr. Reddys
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European stocks closed lower on Wednesday, as sentiment was soured by the threat of a growing debt crisis in the euro zone, offsetting positive results from InBev and a rise in US private sector jobs.

The US stocks sagged on Wednesday as more signs emerged that the fallout from the Greek debt crisis could spread to bigger European economies.

In today's trade, the Asian markets were trading on a negative note. At the time of writing this report, SGX Nifty was trading 28.5 points lower.

Indian markets

The ongoing Greece’ debt crisis still sustains its threat across the global markets that it could spread and disturb the other European countries. In the US, investors were more concerned about Greece' debt crisis despite of good employment data. The Greece’ concern remains the same in the euro-zone, the Asian markets were trading sharply lower on the same issue and Japanese exporters were hit from the euro's weakness. Following the track of the global peers, the Indian markets are set to open on a negative note. We expect the market to remain volatile as the case in the previous last three sessions. Weekly inflation readings are to be announced later today.
However, the earnings of Union Bank of India, Punjab National Bank, Dr. Reddys Laboratories 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 plunged Wednesday as a stronger dollar, fueled by widespread fear of Europe's sovereign debt woes, lessened the appeal of buying crude, with the Nymex light crude oil for the June series declined by $2.77 per barrel, whereas in the metals space, the Comex Gold for the June series increased by $6 and the Comex Silver for the June series was down by $0.31 to a troy ounce respectively.

Daily trend of FII/MF investment in equities

On May 05, 2010, the foreign institutional investors (FIIs) were the net buyers of the Indian stocks to the tune of Rs104.50 crore, whereas the domestic mutual funds, on April 30, 2010, were the net buyers of the stocks to the tune of Rs304.80 crore.