Stocks may shine at the start

Headlines for the day:

Mobile phone companies push for indigenisation

Reliance Retail's ex-chief plans $100 million PE fund

Rashtriya Chemicals & Fertilisers plans expansion at home, abroad



Events for the day:

Major corporate action

Ex-date for bonus of ITC
Ex-date for stock split of Farmax India
Results: Punj Lloyd, Hindalco Industries
For more events and news, log on to Sharekhan.com

Updates on global events

The US ISM Index for the month ended July 2010 came in at 55.5

The UK Purchasing Manager Index Manufacturing for the month ended July 2010 came in at 57.3

Pre-market report

Global signals

European shares hit a three-month closing high on Monday (August 02, 2010), to finish above a key resistance level, boosted by strong results from HSBC and BNP Paribas and better than expected US manufacturing data.

The US stocks closed at their highest level in 10 weeks on Monday and the S&P 500 pierced key technical levels as a weaker US dollar lifted the energy and raw materials sectors.

The Asian markets were strong in their early trades owing to rise on the Wall Street. SGX Nifty was trading 16.50 points higher, pointing towards a positive start on the Indian bourses.

Indian Indices

The investor sentiment across the globe buoyed as better-than-expected growth in the US manufacturing sector and encouraging corporate earnings spurred the appetite for risky assets. The easing worries about the global economic recovery helped the world markets to zoom.

The Indian equities staged a smart comeback in the yesterday’s session after falling in the previous week. The domestic indices may carry previous session’s gains and are expected to perform extremely well at the start tracking the healthy global cues. It is expected to be a cheerful day for the markets. The Sensex and the Nifty are expected to remain bullish and are likely to trade above their crucial levels of 18000 and 5400 respectively.

The auto companies declared encouraging auto sales numbers, which will keep the auto shares in focus. The banking shares will be also watched owing to strong results by some banks, which led the banking stocks to rise heavily in the previous session.

The companies like Punj Lloyd and Hindalco Industries will declare their results today; stocks will be eyed.

Commodity cues

Oil prices surged past the $80-a-barrel mark on Monday to their highest level in nearly three months, as investors regained confidence in the pace of the global economic recovery.

Daily trend of FII/MF investment in equities

The foreign institutional investors (FIIs)’ buying on August 02, 2010 have been substantially lower at Rs1040.20 crore as compared to Rs4,438.40 crore on Friday (July 30, 2010).