Markets may see a strong start

Headlines for the day:

Airline debt recast hinges on RBI cues

Department of Telecommunications backs regulator's 2G plan

LIC to approach IRDA for floating infra bonds




Events for the day:

Major corporate action

Ex-date for consolidation of shares of Trimurthi Drugs & Pharmaceuticals
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

The Indian markets are expected to start strong, following the positive Asian markets. As there are no major triggers back home and the earnings season is yet to start, the domestic markets may take cues from the world economic data and are expected to follow its global counterparts. Persistent buying by foreign institutional investors (FIIs) and short covering by traders is expected to keep the domestic indices firm.

The September vehicles sales reports from automobile manufacturers have turned out to be encouraging, which may keep the auto stocks in focus. The cement stocks are also likely to take cues from the September shipments figures.

A report from the International Monetary Fund (IMF) says Indian economy is likely to expand 9.4% in 2010, and this augurs well for the markets’ near-term prospects. The strong forecast from the IMF is likely to keep FIIs to attract and pump more funds at least for another few weeks.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian shares worth a net of Rs4,755.8 crore on September 30, 2010. The domestic investors have sold the Indian stocks worth a net of Rs1,093.80 crore on September 30, 2010.

Global signals

The European markets fell to a one-month closing low on Friday (October 01, 2010) after data showed growth in the US manufacturing sector slowed in September, and on nervousness ahead of the third quarter reporting season.

The Wall Street extended the rally on Friday, led by gains in resource stocks after data in China showed a pick-up in manufacturing activity.

The Asian markets were trading higher, following the marginally higher Wall Street. SGX Nifty was trading 26.5 points higher, suggesting towards a positive start on the Indian indices. Shanghai Composite index is shut today.

Commodity cues

Crude oil prices stayed higher on Friday, after a report that showed US personal income rose 0.5% and personal spending climbed 0.4% in August, as the crude oil futures for November delivery rose by $2.01, to settle at $81.58 a barrel.