Flat to negative start likely

Headlines for the day:

Bajaj may not form joint venture with Renault, Nissan

Govt gets ball rolling on FDI in retail

Indian Oil Corporation plans Rs700 crore power play



Events for the day:

Major corporate action

Hindustan Media Ventures IPO closes today
Aegis Logistics board to consider bonus issue today
Mahalaxmi Rubtech board to consider stock split today
For more events and news, log on to Sharekhan.com

Pre-market report

Global signals

The European shares bounced back on Tuesday (July 06, 2010), hitting their highest close in a week, helped by expectations that banks would pass the continent-wide strength tests.

The US stocks cut gains on Tuesday, unable to sustain a broad rally as investors pocketed gains after data showed a slowdown in growth in the services sector.

The Asian markets were trading in the red despite Wall Street gains. SGX Nifty was trading 12 points lower.

Indian Indices

Though the US bourses ended with modest gains, the weak US Institute for Supply Management (ISM) service-sector data continued to raise concerns about the pace of the global economic recovery. This weighed on the Asian markets. The Indian markets are expected to have a flat to negative opening on account of weak Asian cues.

The next major trigger for the market is Q1 June 2010 results of India Inc, which will start kicking in from the second week of July 2010. The advance tax collections for the first quarter of the current financial year point to a strong growth in corporate sector profits. The advance tax payments by companies during the April-June quarter account for 15% of the total advance tax payable in the fiscal year. This may bring some momentum in the markets.

Commodity cues

In the commodity space, the crude oil prices were down, with the Nymex light crude oil for the August series declined by $0.16 per barrel. In the metals space, the Comex Gold for the July series dipped by $12.60 to a troy ounce and the Comex Silver for the June series was up by $0.14 to a troy ounce.

Daily trend of FII/MF investment in equities

The foreign institutional investor (FIIs) began July month as net buyers, however, in the last two trading sessions they have been the net sellers. On July 06, 2010, the FIIs sold Indian stocks worth Rs216.20 crore, whereas the domestic mutual, on July 01, 2010, were the net sellers of the stocks to the tune of Rs121.60 crore.