Markets likely to get a flat start

Headlines for the day:

RCom-GTL tower merger creates $11-billion giant

Piramal Healthcare eyes buys in US, Europe, Canada

GPL to invest Rs27 crore on embankments



Events for the day:

Major corporate action

Ex-date for stock split of Genesys Intl, Chartered Logistics
Ex-date for bonus issue of Kansai Nerolac
Ex-date for dividend Uco Bank
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European shares hit a two-week closing low on Friday (June 25, 2010), as data showed first-quarter US economic growth was slower than reported, while BP's battle to clean the Gulf of Mexico oil spill weighed on its sector.

The US stocks rose on Friday as a rally in bank shares and a focus on positive results from Oracle buoyed a market that struggled for direction after mixed economic data.

The Asian stocks were mixed on Monday (June 28, 2010) in cautious trade as investors digested varied cues, including a lacklustre session on the Wall Street on Friday and the communique from the Group of 20 nations over the weekend. SGX Nifty was trading mere four points higher.

Indian Indices

The deficit-cutting goal was outlined in a final statement from the top 20 industrial and developing nations at their weekend summit in Toronto, despite concerns that cutting stimulus spending too quickly could stall the global recovery. The Asian markets were reflecting some concern about the divergence of views in the G-20 on the need to deal with fiscal imbalances. Tracking the mixed Asian cues, the Indian equities may have a flat opening.

The Indian indices are likely to remain range-bound in the absence of any major global trigger.

The oil & gas stocks may be in focus after the government's move to raise fuel prices on Friday. The government's decision may stoke inflation, maintaining pressure on the Reserve Bank of India to tighten monetary policy. Owing to this, the banking stocks may also be eyed by the investors. Reliance Communications (RCom) and GTL Infra shares may also remain in focus as RCom and GTL Infra ink Rs50,000 crore tower deal.

Commodity cues

In the commodity space, the crude oil prices rose, with the Nymex light crude oil for the August series surged by $2.35 per barrel. In the metals space, the Comex Gold for the June series rose by $10.30 to a troy ounce and the Comex Silver for the June series was up by $0.37 to a troy ounce.

Daily trend of FII/MF investment in equities

On June 25, 2010, the foreign institutional investors (FIIs) were the net buyers of the Indian stocks to the tune of Rs1,238.40 crore, whereas the domestic mutual, on June 24, 2010, were the net sellers of the stocks to the tune of Rs282.70 crore.