Stocks to open higher on strong global cues

Headlines for the day:

RBI: Exclude banks from class action

Fortis Hospitals plans expansion in Bangalore

Acquisitions to drive Tata Global's foods foray



Events for the day:

Major corporate action

Gold Rock Investments board to consider bonus issue
Ex date for dividend of IFCI, Tantia Constructions
Ex date for final dividend of Havells India
For more events and news, log on to Sharekhan.com

Updates on global events

The US Unemployment Rate for the month ended August 2010 stood at 9.6% as compared to 9.5% seen in the previous month.

Pre-market report

Global signals

The European shares hit a three-week closing high on Friday (September 03, 2010) and posted their biggest weekly gain in about eight weeks as investors grabbed equities after figures showed that US employment declined far less than expected in August.

The Wall Street closed a stellar week on Friday after recent economic data, including a stronger-than-expected labour market report, bolstered optimism that the economy would not fall back into recession. The US market remains closed on Monday (September 06, 2010), for Labour Day holiday.

The Asian markets were trading higher on Monday tracking strong gains in the US markets. SGX Nifty was trading 24 points up, pointing towards a positive start on the Indian bourses.

Indian indices

The Indian indices ended the first week of September month on a higher note, with the Sensex and the Nifty closing above their crucial levels of 18200 and 5400 as global markets rallied on signs of economic recovery gaining strength.

Tracking the healthy global cues, the domestic markets are likely to open on a strong note. The Nifty is likely to open above its key levels of 5500.

However, the markets are expected to remain in a narrow range and will look towards global peers for direction owing to absence of positive cues and fresh triggers back home.

Commodity cues

Crude oil prices declined after service industries grew in August at the weakest pace in seven months, signalling that the US economic rebound may slow, as the crude oil futures for October delivery dipped by $0.42, to settle at $74.60 a barrel.

Daily trend of FII/MF investment in equities

The foreign institutional investors (FIIs) have been positive on the India markets and continued their buying trend, as they bought Indian equities worth a net of Rs147.90 crore on September 03, 2010, as compared to net buyers of Rs526.80 crore on September 02, 2010. The domestic investors bought Indian stocks worth a net of Rs19.50 crore on September 02, 2010.