Flat start likely on Greece rating cut

Headlines for the day:

RCom to demerge tower biz, sell stake

Sun, Ranbaxy hit by us patent counter-suits

Bajaj to get into water purification biz



Events for the day:

Major corporate action

Emami Paper Mills will be list today
Ex-date for final dividend of TCS, Wipro
Ex-date for bonus issue of Kwality Dairy, Wipro
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European shares rose to their highest close in a month on Monday, with banks and miners among the biggest gainers as optimism on global economic recovery led some investors to cover short positions.

The US stocks ended little changed in a low-volume session on Monday after a downgrade of Greece's debt took the wind out of the market's sails.

The major Asian indices were slightly lower on Tuesday after a late reversal dented Wall Street, with technology stocks weighing on the Tokyo market. SGX Nifty was trading mere two points higher.

Indian Indices

The world markets were quite calm as the US turned around from an early rally after a downgrade for Greece's debt rating served as a reminder that Europe's debt issues were far from resolved. Moody's Investors Service slashed Greece's government debt rating by four notches, to Ba1 from A3, following a similar move by Standard & Poor's in April.

But the downgrade will not have a big impact on the Indian equities. Moody's downgrade of Greece's credit rating may not move the sentiments in the domestic market too much. This is just one more downgrade in a series that began late last year. Tracking the Asian cues, the Indian shares are expected to begin on a flat note.

Investors will eye the first installment of the corporate advance tax payment from today, which will give some clue about the June quarter corporate results.

Stock specific action will be seen in Reliance Industries as it has entered in the telecom space and the upward movement in the stock is likely to continue for a few more sessions. Reliance Infratel and GTL will also be in focus as they are in talks for possible deal. Also Emami Paper Mills will be getting listed today.

Commodity cues

In the commodity space, the crude oil prices jumped Monday, riding on the back of stronger stocks and foreign exchange, with the Nymex light crude oil for the July series rose by $1.34 per barrel, whereas in the metals space, the Comex Gold for the July series declined by $5.60 to a troy ounce and the Comex Silver for the July series was up by $0.18 to a troy ounce.

Daily trend of FII/MF investment in equities

On June 14, 2010, the foreign institutional investors (FIIs) were the net buyers of the Indian stocks to the tune of Rs895.70 crore, whereas the domestic mutual, on June 10, 2010, were the net buyers of the stocks to the tune of Rs209.90 crore.