Weak start likely on poor global cues

Headlines for the day:

Glenmark enters into licensing pact with Taro's US arm

SC verdict in RIL-RNRL case today

State inks MoU with JSL for 1320MW power plant

Events for the day:

Major corporate action

Ex-date for interim dividend of Bihar Tubes, Firstobject Technologies
Results: Bank of India, Cipla, Piramal Healthcare
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European shares fell sharply for the third consecutive session on Thursday to a more than two-month closing low, as fears of a contagion from Greece' debt crisis rattled investors' confidence.

The US stocks plunged 9% in the last two hours of trading on Thursday before clawing back some of the losses as a suspected trading glitch and fears of a new credit crunch in Europe threw markets into disarray.

In today's trade, the Asian markets were trading in the negative territory. At the time of writing this report, SGX Nifty was trading 120 points lower.

Indian markets

The global equities like US and Europe finished down, which clearly indicates that major concern over sovereign debt risks still remains far from resolved. However, the European Central Bank President said that the central bank did not discuss the option of buying euro zone government bonds during its meeting where it kept interest rates on hold at 1%. Following the path, the Asian markets were trading in the negative bias and declined 2.4% on an average. The Indian markets are likely to witness a lower start mirroring the weak global cues and end the day on a negative note.

The companies like Bank of India, Cipla, Piramal Healthcare, Torrent Power, Aditya Birla Nuvo, Oracle Financial Services will be watched as their results are to be announced later today. In the last four trading sessions of this week, the Sensex declined by 571 points.

The Supreme Court today will decide the dispute between Mukesh Ambani’s Reliance Industries (RIL) and Anil Ambani’s Reliance Natural Resources (RNRL) over the supply of gas from the Krishna-Godavari basin. The stocks will closely eyed

Commodity cues

In the commodity space, the crude oil prices fell sharply Thursday, a day after sinking to their lowest levels in over six weeks, as the US dollar continued to strengthen and stocks plummeted, amid the fallout from Greece's debt crisis, with the Nymex light crude oil for the June series declined by $2.86 per barrel, whereas in the metals space, the Comex Gold for the June series rose by $22.30 and the Comex Silver for the June series was down by $0.02 to a troy ounce respectively.

Daily trend of FII/MF investment in equities

On May 06 2010, the foreign institutional investors (FIIs) were the net sellers of the Indian stocks to the tune of Rs1389.10 crore, whereas the domestic mutual funds, on May 04, 2010, were the net sellers of the stocks to the tune of Rs442.80 crore.