Flat start likely on Asian cues

Headlines for the day:

De-listing hopes boost MNC stocks

Vishal Retail sees deal opportunity with tpg

RMW raises stake in Fame to 15.28%

Events for the day:



Major corporate action

Ex-date for bonus issue of Rallis India
Ex-date for dividend of Ratnabali Cap, Sonata Soft, VTM
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European shares fell on Monday (June 07, 2010), as worries over debt problems in Hungary added to jitters about fiscal health in Europe, while British Petroleum (BP) was pressured by a broker downgrade and concern over the impact of its oil spill.

The US stocks fell on Monday, taking the S&P 500 to its lowest close in seven months, as industrials and technology shares fell and investors stayed on their heels after last week's payrolls figure discouraged buyers.

In today's trade, the Asian markets were trading with a positive bias. SGX Nifty was trading 1.50 points lower.

Indian Indices

Yesterday, the domestic market tanked in line with the global markets. The heavy sell-off across the world markets was deliberately hit by the sovereign debt crisis in some European countries, the latest being Hungary. The US markets hit a seven-month low as major stock indices slid more than 3% after the weaker-than-expected May non-farm payrolls report and as worries increased over Euro debt crisis.

Fears of Europe's festering debt troubles refuse to subside. The Asian markets were trading marginally higher, as investors were cautious after a heavy fall on the Wall Street. Following the movements of global markets, the Indian equities are expected to have a flat beginning.

To find some direction, the domestic market will continue to watch global risk barometers as the day gets underway.

The empowered group of ministers, headed by Finance Minister Pranab Mukherjee has failed to reach a decision on fuel prices yesterday. The government has postponed a controversial decision on raising fuel prices.

Commodity cues

In the commodity space, the crude oil prices dropped on Monday in tandem with global stock markets, extending deep losses sustained late last week, with the Nymex light crude oil for the July series down by $0.07 per barrel, whereas in the metals space, the Comex Gold for the July series rose by $23.10 to a troy ounce and the Comex Silver for the July series was increased by $0.86 to a troy ounce.

Daily trend of FII/MF investment in equities

On June 07, 2010, the foreign institutional investors (FIIs) were the net buyers of the Indian stocks to the tune of Rs274.90 crore, whereas the domestic mutual, on June 04, 2010, were the net sellers of the stocks to the tune of Rs10.90 crore.