Markets likely to get a soft start

Headlines for the day:

Network18 to restructure its listed entities

BP eyes stake sale as spill cost tops $3 billion

JSW Energy to commission 1,600MW Salboni plant by 2014



Events for the day:

Major corporate action

Ex-date for dividend of Deepak Fertilisers & Petrochemicals, JK Lakshmi Cement
Ex-date for bonus issue of Marathon Nextgen Realty
Ex-date for stock split of Tulip Telecom
For more events and news, log on to Sharekhan.com

Pre-market report

Global signals

The European shares fell to their lowest close in nearly six weeks on Monday (July 05, 2010), with miners weaker on a gloomier economic outlook and volumes thin as Wall Street was closed for the holiday.

The US markets were closed on Monday for the Independence Day holiday..

The Asian markets were trading in the negative zone on Tuesday, with the Tokyo market hit by losses in exporter stocks fuelled by yen strength. SGX Nifty was trading 24.5 points lower.

Indian Indices

The nationwide Bharat Bandh called yesterday had impacted the investors and traders participation in the markets. This resulted in the lower volumes in the yesterday’s trade.

Today, in India things seems to be normal and the markets may witness some volumes. The domestic bourses are likely to have a soft start following the negative signals from the Asian and European markets. The holiday in the US may keep the investors sideline.

The on growing worries over the global economic recovery following data showing Europe's service growth slowed for a second month. The poor result was a fresh sign that a recovery in the global economy is losing momentum; this may drag the market sentiments.

Commodity cues

In the commodity space, the crude oil prices dipped, with the Nymex light crude oil for the August series declined by $0.81 per barrel. In the metals space, the Comex Gold for the July series increased by $1.10 to a troy ounce and the Comex Silver for the June series was down by $0.06 to a troy ounce.

Daily trend of FII/MF investment in equities

On July 05, 2010, the foreign institutional investor (FIIs) were the net sellers of the Indian stocks to the tune of Rs232.10 crore, whereas the domestic mutual, on June 30, 2010, were the net buyers of the stocks to the tune of Rs89.30 crore.