Markets set to start strong

Headlines for the day:

SAIL's Rs16,000-cr FPO may not come this year

HPCL to make own ethanol for petro-blending

TVS eyes UP scooter market



Events for the day:

Major corporate action

Zodiac Clothing board to consider bonus issue today
Results: Union Bank of India, Essar Oil, NTPC
Ex-date for dividend of India Cements, Emami Paper
For more events and news, log on to Sharekhan.com

Pre-market report

Global signals

European shares ended at their highest in more than a week on Friday (July 23, 2010), led higher by miners, as strong corporate results and encouraging economic data improved market sentiment.

General Electric delivered a shot of confidence to US investors when it raised its dividend on Friday, pushing the S&P 500 through the key 1100 levels. The wide-ranging impact GE has on the economy, coupled with another round of strong earnings, bolstered investor confidence.

Asian markets rose on Monday, boosted by solid US corporate earnings and after news that fewer-than-expected European banks failed stress tests. SGX Nifty was trading 0.40 points higher, indicating towards a positive start on the Indian indices.

Indian Indices

The results of European bank stress tests, which came in late Friday showed that total of seven of 91 banks have failed the test. It indicated that French Banks are the healthiest banks in Europe. The results were again better than expected, which boosted investor sentiment across the globe.

Tracking positive global cues, the domestic markets are expected to begin the week on a strong note.

So far, the earnings by most of the corporates have been in line with Street expectations. Earnings optimism, strong foreign institutional investor (FII) inflows and positive economic news may bring some momentum in the Indian markets.

Tech Mahindra, United Phosphorus, Sterlite Industries, Union Bank of India, Century Textiles & Industries, Essar Oil and Glaxosmithkline Pharmaceuticals will declare their results today; the stocks will be closely eyed.

Commodity cues

Oil rose to its highest level in three weeks, nearing $78 a barrel, as signs of growing Chinese demand for energy and a cheerier Wall Street boosted prices.

Daily trend of FII/MF investment in equities

FIIs are bullish about the India growth story and are expected to infuse more money. The FIIs have remained net buyers in the previous week. The FIIs on July 23, 2010 bought stocks worth Rs188.40 crore into the Indian markets.