Gap-up opening seen; Inflation nos eyed

Headlines for the day:

GTL eyes RCom in tower tango

Renuka Sugars seals revised Equipav deal, for lower price

Sun Pharmaceutical turns down Taro's offer

Events for the day:

Major corporate action

Weekly inflation to be announced today
Ex-date for dividend of Indiabulls Financial and Indiabulls Securities
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European stock markets bounced back from early lows Wednesday following a strong showing on Wall Street where investors cheered upbeat US housing data.

The US stocks rallied on Wednesday as investors rushed back into beaten-down shares, led by energy, which bore the brunt of the sell-off a day earlier.

In today's trade, the Asian markets were trading higher, except Shanghai Composite that was trading lower by 0.22%. SGX Nifty was trading 56 points higher.

Indian Indices

After a strong comeback yesterday where the Nifty closed above its significant level of 5000, today the domestic markets are expected to open strong with a positive bias following its global peers (with Europe being an exception). The US stocks recorded heavy gains yesterday with all the major indices clocking gains of over 2.5% each. After a day of heavy sell-off on Tuesday, the investors in the US responded to the better-than-expected economic data, which increased investors confidence and rebounce in the energy stocks. However, going into the session, the inflation announcement may keep the market volatile.

Talking about the foreign institutional investors (FIIs), they have been the net buyers over the last few days in the Indian equities as the data that were announced recently about the upbeat gross domestic product (GDP), strong auto sales numbers and cement despatches for the month of May and signs of cooling of the fiscal deficit front were quite encouraging. Secondly, the emerging markets threw better growth opportunities and with the sustained tensions in the developed economies of the Europe and the US, investment in the emerging economies were more attractive for the FIIs over a longer period. Though concerns over the Euro zone causing the risk aversion for the global investors and weakening the sentiments, may continue playing a spoil sport for the markets for a while.

With the governments review of the oil prices round the corner, the oil and gas stocks will be in the focus over the next few sessions.

Commodity cues

In the commodity space, the crude oil prices erased losses Wednesday as stocks turned higher, led by a jump in energy shares, with the Nymex light crude oil for the July series rose by $0.28 per barrel, whereas in the metals space, the Comex Gold for the July series down by $4.20 to a troy ounce and the Comex Silver for the July series was declined by $0.24 to a troy ounce.

Daily trend of FII/MF investment in equities

On June 02, 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs472.80 crore, whereas the domestic mutual funds, on June 01, 2010, were the net sellers of the stocks to the tune of Rs13.30 crore.