Stocks set to begin strong

Headlines for the day:

Mukesh plans $5-billion telecom revolution 2.0

Jubilant organosys to set up two units in Bharuch SEZ

Welspun to invest Rs300 crore to enhance production



Events for the day:

Major corporate action

Parabolic Drugs IPO opens today
Fatpipe Networks India IPO closes today
Monthly inflation to be announced today
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European shares closed higher for a third day on Friday (June 11, 2010) as British Petroleum rebounded on supportive UK government comments, while investors focused on positive data from the United States, lifting risk sensitive banks.

The US stocks rose in a late rally on Friday as a strong forecast from a chip maker lifted tech shares and helped alleviate concerns about the economy's health after an unexpected drop in retail sales.

The major Asian indices were trading higher. SGX Nifty was trading 26.5 points higher.

Indian Indices

The Indian stocks may start the week on a bright note. The markets are likely to carry forward the upward movement today as risk appetite is returning to the markets on the back of a strong domestic economic scenario and strengthening global cues.

As the market has performed well in the past few sessions, it seemed that the confidence level among investors is returning. The sentiment across the globe is positive.

The domestic market after being beaten heavily on European debt worries, is now cheering positive news coming in from all fronts. The global markets are edging higher on easing concerns over the European markets.

India’s index of industrial production (IIP) numbers for April 2010 came in at 17.6% (released on Friday June 11, 2010), which expanded at a faster rate. This domestic trigger may add some momentum in today’s trade.

Investors will eye the first installment of the corporate advance tax payment (due on June 15, 2010), which will give some clue about the June quarter corporate results. The inflation data for the month of May will also be eyed today.

Stock specific action will be seen in market heavyweight Reliance Industries that acquired Infotel on Friday. Investors will also be watching the movements in Spicejet as Sun TV Promoter Kalanithi Maran has acquired 37.75% in low-cost airline at Rs47.25 per share amounting to Rs750 crore. Mr Maran will make an open offer for 20% at around Rs57 per share today.

The empowered group of ministers meet (EGoM) on oil will meet on June 17, 2010 could bring some interest into oil companies again.

Commodity cues

In the commodity space, the crude oil prices fell for the first time in four days after a government report showed retail sales dropped unexpectedly last month, with the Nymex light crude oil for the July series dipped by $1.70 per barrel, whereas in the metals space, the Comex Gold for the July series rose by $8.10 to a troy ounce and the Comex Silver for the July series was up by $0.12 to a troy ounce.

Daily trend of FII/MF investment in equities

On June 11, 2010, the foreign institutional investors (FIIs) were the net buyers of the Indian stocks to the tune of Rs388.70 crore, whereas the domestic mutual, on June 10, 2010, were the net buyers of the stocks to the tune of Rs209.90 crore.