Hungary fears may drag Indian equities at start

Headlines for the day:

RCom board endorses 26% stake sale idea

Oil rig oversupply pulls down rates

GUVNL inks PPAs for 420MW solar projects in Gujarat

Events for the day:

Major corporate action

Government to review fuel pricing today
Fatpipe Networks India IPO opens today
Ex-date for dividend of Surana Corp, Tulsyan NEC
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European shares snapped their four-day winning streak to end lower on Friday (June 04, 2010) after US jobs data disappointed and banks fell, with Societe Generale down on concerns over its derivatives operations.

The US stocks stumbled to their lowest close since February on Friday after May's jobs figure slammed investors already reeling from worry over another developing debt crisis, this time in Hungary. US stocks fell 3% and the Dow Jones industrial average finishing below 10,000, hit by disappointing jobs data and fresh European fears.

In today's trade, the Asian markets were trading in the negative zone after Wall Street slumped on Friday. SGX Nifty was trading 126 points lower.

Indian Indices

The strong rally in the last week due to constructive triggers back home led the Indian equities end the week with a positive bias. But now the global scenario is quite different and the market sentiment across the globe is dragged down by fresh fears that Europe's debt crisis could spread as Hungary scrambled to calm worries that the nation is close to defaulting on its debts.

The Indian stocks may face pressure and reverse its rally leading to a gap-down opening at the start, following the movements of its global counterparts. It is expected to trade with a negative bias throughout the session. The major events back home today will be the meeting of empowered group of ministers (EGoM), to consider the Kirit Parikh committee recommendations on decontrol of fuel prices. The oil & gas stocks will be in focus throughout the day.

Commodity cues

In the commodity space, the crude oil prices slipped, with the Nymex light crude oil for the July series down by $3.10 per barrel, whereas in the metals space, the Comex Gold for the July series rose by $7.90 to a troy ounce and the Comex Silver for the July series was declined by $0.63 to a troy ounce.

Daily trend of FII/MF investment in equities

On June 04, 2010, the foreign institutional investors FIIs were the net buyers of the Indian stocks to the tune of Rs493.30 crore, whereas the domestic mutual, on June 01, 2010, were the net sellers of the stocks to the tune of Rs13.30 crore.