Market may open higher on global rally

Headlines for the day:

Govt softens stand in new tax code

Emami to seal Egyptian buy soon

Cipla unveils Rs300 crore plan to foray into biosimilar space



Events for the day:

Major corporate action

Ex-date for final dividend of Thangamayil Jewellery
Ex-date for dividend of Binani Cement, Binani Industries
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European shares rose for the fifth straight session on Tuesday, as strong demand for Irish, Belgian and Spanish government debt helped to soothe worries about the euro zone's fiscal health.

The US stocks jumped on Tuesday as investors went on a buying binge. The S&P 500 turned positive for the year and rose above its 200-day moving average for the first time in a month, suggesting the recent downtrend may be nearing an end.

The major Asian indices were trading on a positive note as the Wall Street closed higher. China’s Shanghai Composite is closed today. SGX Nifty was trading up 21.5 points.

Indian Indices

The downgrade for Greece's debt rating did not had a big impact on the global equities. The strong demand for European sovereign debt sparked a rally across global markets.

The domestic market maybe not out of the woods yet as far as euro zone debt crisis are concerned but things are showing signs of improvement. The Indian indices are dependent upon what happens globally. So looking at the strong clues from the global counterparts, the domestic markets are expected to open higher.

Few things which maybe going right for India are the monsoons, which seem to be progressing on track, and good news on the Reliance Natural Resources-Reliance Industries front, which may cheer the market.

Advance tax collections for the first quarter of the current financial year point to a strong growth in corporate sector profits. This may bring some momentum in the market.

Commodity cues

In the commodity space, the crude oil prices rose Tuesday on forecasts of falling US crude supply, with the Nymex light crude oil for the July series rose by $1.82 per barrel, whereas in the metals space, the Comex Gold for the June series jumped by $9.90 to a troy ounce and the Comex Silver for the June series was increased by $0.17 to a troy ounce.

Daily trend of FII/MF investment in equities

On June 15, 2010, the foreign institutional investors (FIIs) were the net buyers of the Indian stocks to the tune of Rs380.60 crore, whereas the domestic mutual, on June 14, 2010, were the net buyers of the stocks to the tune of Rs111.70 crore.