Markets to open higher on firm Asian cues

Headlines for the day:

ADAG, CBS propose JV for TV channels

MNCs face difficult choice in new float rule

L&T's electrical division to double sales to Rs8,000 cr



Events for the day:

Major corporate action

Ex-date for bonus issue and stock split of Sterlite Industries
Ex-date for dividend of Corporation Bank, Sterling Biotech
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European shares rose on Friday (June 18, 2010) for the eighth consecutive day, its longest winning streak in 11 months, boosted by banking stocks as European leaders agreed to publish details of stress tests on the financial health of the sector.

The US shares rose slightly in another lightly traded session on Friday, ending a nervous week higher despite signs of economic weakness at home and worries about public debt in Europe.

The Asian markets were firm in their early trade after China's decision to allow a more flexible exchange rate on its currency boosted confidence in the world's third largest economy.. SGX Nifty was trading 63.5 points higher.

Indian Indices

There are no negative news coming in from the global front and on the domestic side also the growth figures are positive. The Indian markets may continue to look at overseas markets for direction. Dalal Street is likely to open on a strong note tracking positive Asian cues. The foreign funds putting in more money in the domestic market and recovery in global easing worries over euro zone debt crisis has also lifted the market sentiments.

Volatility is expected to heighten in the run up to the June series futures and options expiry on Thursday (June 24, 2010) as traders will shuffle their bets to suit their outlook for July.

On stock specific front, shares of Reliance Industries may trade choppy, as the lack of big-bang announcements in its annual general meeting on Friday might weigh down sentiment in the stock.

Back home, the progress of monsoon across the country will be watched by investors.

Insurance industry regulator Insurance Regulatory and Development Authority (IRDA) has emerged the victor in a high-profile tussle over the regulation of so-called unit-linked insurance plans (ULIPs), with the government ruling that it and not the market watchdog Securities and Exchange Board of India (SEBI) would oversee the product.

Commodity cues

In the commodity space, the crude oil prices gained, with the Nymex light crude oil for the July series up by $0.39 per barrel. In the metals space, the Comex Gold for the June series rose by $9.70 to a troy ounce and the Comex Silver for the June series was up by $0.41 to a troy ounce.

Daily trend of FII/MF investment in equities

On June 18, 2010, the foreign institutional investors (FIIs) were the net buyers of the Indian stocks to the tune of Rs544.20 crore, whereas the domestic mutual, on June 17, 2010, were the net sellers of the stocks to the tune of Rs292.90 crore.