Gap-up start likely on strong global cues

Headlines for the day:

RBI moves Finmin to secure autonomy

Network18 recasts business into two listed companies

International Finance Corporation to invest Rs70 crore in Vicat Sagar



Events for the day:

Major corporate action

Weekly inflation to be announced today, to view the update on this, kindly log on to Sharekhan.com at 12 pm.
Ex-date for bonus issue of P.I. Industries
Ex-date for dividend of Bank of India, Bajaj Auto

Pre-market report

Global signals

The European shares closed higher on Wednesday (July 07, 2010), led by banks after US peer State Street said its quarterly earnings would beat forecasts, lending hope to the broader sector, and on optimism most banks would pass stress tests.

The US stocks posted their best one-day gain in about six weeks on Wednesday after a bullish forecast from financial company State Street Corporation fueled optimism about the coming earnings season and helped the S&P 500 break above a major resistance level.

The Asian markets were trading higher, lifted by an overnight rally on the Wall Street. SGX Nifty was trading 77 points higher, which indicates a strong start at the Dalal Street.

Indian Indices

The world markets got boosted after a bullish forecast from the financial company State Street that fuelled optimism about the coming earnings. The Indian bourses are expected to witness a strong beginning owing to the firm global cues.

The investors will also keep an eye on the weekly inflation numbers, which will be announced today. The Reserve Bank of India (RBI) monetary measures may contain inflation and anchor inflationary expectations going forward, not hurting the recovery process.

The revival of monsoons in the past few days after weak rains last month, may also improve the market sentiments ahead.

Commodity cues

In the commodity space, the crude oil prices break a 6-session losing streak and rise above $74 a barrel, tracking gains in stocks and euro. In the metals space, the Comex Gold for the July series rose by $2.09 to a troy ounce and the Comex Silver for the July series was up by $0.15 to a troy ounce.

Daily trend of FII/MF investment in equities

The foreign institutional investor (FIIs) has turned net buyers, after being the net sellers for the previous two days in this week. On July 07, 2010, the FIIs bought Indian stocks worth Rs375.50 crore, whereas the domestic mutual, on July 06, 2010, were the net sellers of the stocks to the tune of Rs124.60 crore.