Markets set for a strong opening

Headlines for the day:

CCEA okays divestment in Shipping Corporation

RIL, Bechtel firm up power plans

NELP-IX norms to give firms more time to explore oil



Events for the day:

Major corporate action

Eros International Media, Career Point Infosystems to list today
BS TransComm IPO opens today
Sadbhav Engineering board to consider stock split
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

It’s one-on-one against bulls versus bears in the previous two sessions of this week. However, in today’s trade, bulls will take the charge, as the external environment is upbeat. Tracking the strong global cues, the Indian markets are expected to begin on a higher note.

Telecom operators in the country added 18.18 million subscribers in August this year, taking the total number of mobile users in India to 670.60 million; the telecom stocks will hog the limelight in today’s session.

The government that holds 80.12% stake in Shipping Corporation of India, has approved sale of 10% equity in the company; the stock will remain in focus.

There are new listings on the bourses today, Eros International Media and Career Point Infosystems, with an issue price of Rs175 and Rs310 per share respectively.

Daily trend of FII/MF investment in equities

The foreign institutional investors (FIIs) have bought Indian shares worth a net of Rs1,918.90 crore on October 05, 2010, marginally lower than Rs1,964.10 crore on October 04, 2010. The domestic investors have sold the Indian stocks worth a net of Rs352.60 crore on October 04, 2010.

Global signals

The European shares rose on Tuesday (October 05, 2010), as concerns over the pace of recovery eased after data showed a pickup in the US services sector, while a stimulus pledge from the Bank of Japan to spur the economy also reassured investors.

The US stocks rallied to nearly a five-month high on Tuesday on growing conviction that central banks will do even more to bolster struggling economies worldwide.

The Asian markets were trading higher, buoyed by growing expectations that the Federal Reserve will implement fresh quantitative easing to bolster the US economy. SGX Nifty was trading 43 points higher, pointing towards a strong opening on the Indian bourses. Shanghai Composite index is shut today.

Commodity cues

Crude oil prices hit a five-month peak near $83 a barrel on Tuesday, boosted by a slumping dollar after a Bank of Japan rate cut, as the crude oil futures for November delivery gained by $1.66, to settle at $82.82 a barrel.