Sensex may weaken at start

Headlines for the day:

RIL may close $1.35-billion US gas deal

Tata Power moves MERC on supply rights

Airtel enters high definition arena



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 fell on Tuesday (June 22, 2010), snapping a nine-day winning run, as markets re-evaluated China's move to give its currency more flexibility and oil group British Petroleum slumped to a fresh 13-year closing low.

The US stocks fell more than 1% in yet another late-day sell off on Tuesday as unexpectedly poor housing figures and the puncture of a key technical level sapped buying interest.

The Asian markets were trading on a weak note on Wednesday (June 23, 2010), weighed by losses on the Wall Street, with energy resources among the biggest losers. SGX Nifty was trading 41.5 points lower.

Indian Indices

The world equities fell on the worries of global economy recovery as markets re-evaluated China's move to give its currency more flexibility and poor housing figures in the US. These sentiments hurt the investors.

The outcome of the US Federal Open Market Committee (FOMC) meeting, which sets interest rates there on Wednesday will be closely watched. Fed may keep the interest rates near zero.

Owing to the weak global cues, the Indian markets are expected to weaken at start and likely to remain lower throughout the session.

Ahead of F&O expiry of the June series on Thursday (June 24, 2010), the traders are expected to roll over their positions in the derivatives segment from the June 2010 contracts to July 2010 contracts. The markets may witness high volatility.

An empowered group of ministers (EGoM) will meet on June 25, 2010 to consider possibly freeing petrol prices from the government control and marginally hiking diesel prices. The oil & gas stocks will be in focus ahead of EGoM meet.

Commodity cues

In the commodity space, the crude oil prices dipped, with the Nymex light crude oil for the July series declined by $0.61 per barrel. In the metals space, the Comex Gold for the June series rose by $0.20 to a troy ounce and the Comex Silver for the June series was up by $0.09 to a troy ounce.

Daily trend of FII/MF investment in equities

On June 22, 2010, the foreign institutional investors (FIIs) were the net buyers of the Indian stocks to the tune of Rs1799.40 crore, whereas the domestic mutual, on June 18, 2010, were the net sellers of the stocks to the tune of Rs45.90 crore.