Flat to negative start likely on Asian cues

Headlines for the day:

R-Power puts Maharashtra gas-based unit on fast track
HUL board to consider share buyback
Thermax signs technology transfer pact with Lambion

Events for the day:

Major corporate action

Ex-date for dividend of Torrent Pharma and LG Balakrishnan
For more events, log on to Sharekhan.com

Pre-market report

Global signals

European shares rose to a two-week closing high on Thursday as oil companies bounced, helped by a surge in the crude price, and growth in the Euro zone services sector boosted investor sentiment.

US Stocks rose on Thursday, led by a late-day surge in technology shares as investors geared up for a strong unemployment report on Friday. Stocks seesawed throughout the session, shifting between optimism and pessimism on a variety of factors, including technical resistance at the S&P 200-day moving average, the euro's weakness, and supportive labor market data.

Asian stock markets were trading marginally down. SGX Nifty was trading 23 points down.

Indian Indices

It was a day of cheer on Dalal Street yesterday. The markets started on a positive note and surged forward, showing no hesitation throughout the session and finally clocking 2% gains. US pending home sales for the month of April 2010 went up 6% as against expected increase of 5%. This news too pushed the other markets higher. The Nifty closed above the 5100 mark while the Sensex ended above 17000 on the back of strong global cues.

Technology shares, among the biggest beneficiaries of an economic recovery, led the US stocks rally. Today, the Asian markets were trading with marginal losses. Investors are expected to remain on the sidelines today, waiting for US employment data. Investors are expected to take a breather after posting huge gains. Following the path led by the Asian markets, the domestic markets are set to witness a flat to negative start.

In the coming day’s, monsoon would have a bearing on the market sentiment. One has to see how it develops and progresses to other parts of the country.

Commodity cues

In the commodity space, the crude oil prices rose on Thursday, with the Nymex light crude oil for the July series rose by $1.75 per barrel, whereas in the metals space, the Comex Gold for the July series down by $12.30 to a troy ounce and the Comex Silver for the July series was declined by $0.38 to a troy ounce.

Daily trend of FII/MF investment in equities

On June 03, 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs127.60 crore, whereas the domestic mutual funds, on June 01, 2010, were the net sellers of the stocks to the tune of Rs13.30 crore.