Sensex head towards a strong start

The domestic indices are likely to start the session on a strong note on the back of positive Asian markets

Headlines for the day:

Government sees 3G auction as model for other sectors

Mahindra likely to bag Ssangyong by March

RIL to invest $5 billion in US shale assets in next 5 years



Events for the day:

Major corporate action

Gravita India IPO opens today
Monthly cement production & dispatches figures, auto sales numbers to be out from today
India's export & import data for September
Results: JSW Energy, Punj Lloyd, GTL Infrastructure

Pre-market report

Indian indices

Today, on the first day of new month (November), the Indian markets are expected to kick-off the session on a strong note, tracking the positive Asian cues. However, the markets may witness a quiet session with traders and fund managers awaiting the Reserve Bank of India's credit policy announcement scheduled tomorrow (November 02, 2010).

The multiple data to be released today like HSBC Markit Purchasing Managers’ Index for September, monthly auto sales and cement dispatches numbers, which may provide some direction to the markets. This may keep the auto and cement stocks in focus.

The domestic bourses going ahead will take cues from the US Federal Reserve's quantitative easing measures and the quarterly results of the companies. Reliance Industries announced its results on Saturday (October 30, 2010), reporting another record breaking jump of 28% in its second quarter net profit – its highest ever quarterly profit since 2007, on the back of higher gas sales and improved refining margins; the stock will be eyed.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs557.70 crore on October 29, 2010 as against net buy of Rs97.80 crore on October 28, 2010. The domestic investors have sold Indian shares worth a net of Rs80.40 crore on October 28, 2010.

Global signals

The European stocks ended slightly higher on Friday (October 29, 2010), posting a second consecutive monthly gain, as US gross domestic product data cemented expectations of monetary easing from the Federal Reserve next week.

The US stocks ended on a flat note on Friday, wrapping up another strong month driven by expectations the Federal Reserve will flood the economy with cash next week.

The Asian markets were trading higher except Nikkei index, as the sentiment was supported by the China's official purchasing managers' index for manufacturing for October. SGX Nifty was trading 63 points higher, indicating towards a healthy opening on the Dalal Street.

Commodity cues

Crude oil prices fell on Friday after data showing tepid US economic growth in the third quarter left investors cautious ahead of expected monetary easing from the US Federal Reserve, as the crude oil futures for December declined by $0.91, to settle at $81.43 a barrel.