Markets likely to start on a firm note

Headlines for the day:

R-Power raises Rs13,125 crore debt for Andhra UMPP

Bajaj, Renault-Nissan sign MoU for small car

India will grow at 9.5% in 2010, says IMF



Events for the day:

Major corporate action

Minal Engineering board to consider bonus issue
Results: Gujarat NRE Coke, Indusind Bank
For more events and news, log on to Sharekhan.com

Pre-market report

Global signals

The European shares hit their highest in more than a week on Thursday (July 08, 2010) as encouraging economic numbers tempered concern about the global economic recovery, while banking shares surged as more details of the sector's stress tests emerged.

The Wall Street rose for a third straight day on Thursday, as investors were encouraged to see jobless claims fall and a handful of large retailers report solid sales.

The Asian markets were trading higher, except Shanghai Composite. SGX Nifty was trading 14 points higher, pointing to a firm start on the Indian bourses.

Indian Indices

The good economic numbers in the US boosted the sentiments across the globe. The world markets were buoyant and this may have a positive impact on the domestic markets. The Indian bourses may continue its trend of following its global counterparts. Tracking the positive Asian markets, the domestic markets are likely to witness a strong start.

So far, the Sensex has witnessed a volatile closing in the last four trading sessions of the week, however, has managed to gain 191 points.

The investors may also closely watch the progress of the monsoon rains. The rains have revived after weak monsoon last month.

Commodity cues

In the commodity space, the crude oil prices rose above $75 per barrel on Thursday, boosted by better-than-expected US jobless data and a draw on US crude stocks. In the metals space, the Comex Gold for the July series declined by $2.80 to a troy ounce and the Comex Silver for the July series was down by $0.13 to a troy ounce.

Daily trend of FII/MF investment in equities

The foreign institutional investor (FIIs) movement have been biased in this week, with two days on buyers’ side and two days on sellers. However, in totality the FIIs have been the net sellers of Rs37.6 crore till date.

On July 08, 2010, the FIIs bought Indian stocks worth Rs35.20 crore, whereas the domestic mutual, on July 07, 2010, were the net buyers of the stocks to the tune of Rs45.90 crore.