Strong start likely for markets

The Indian markets are expected to begin the session on a positive note tracking the worldwide rally

Headlines for the day:

SpiceJet to buy aircraft for $900 million

Banks likely to hike home loan rates by January

Vedanta gives Rs10 crore bank guarantee to state pollution board



Events for the day:

Major corporate action

Gravita India IPO closes today
Tribhuvan Housing board to consider stock split
Results: Oriental Bank of Commerce, Aurobindo Pharma, MTNL, GAIL, CESC
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

The festive week seems to be good for the Indian indices, as the Sensex and the Nifty have gained 303 and 101 points respectively till now in this week. Today, the Indian indices are expected to begin on a strong note following the worldwide rally.

However, the investors may remain cautious, as the markets will wait to see how aggressively the Federal Reserve moves on stimulus measures.

The results from Indian firms will be closely eyed, which could trigger sharp moves in the companies’ stocks.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs5,517.60 crore on November 02, 2010 as against net buy of Rs963.90 crore on November 1, 2010. The domestic investors have bought Indian shares worth a net of Rs17.50 crore on October 29, 2010.

Global signals

The European shares rose for a fourth straight day to hit a six-month closing high on Tuesday (November 02, 2010), with energy companies BP and BG Group gaining after profits beat forecasts.

The US markets climbed to their highest level since the spring as a combination of hefty gains for the Republicans and the prospect of another $500 billion from the Federal Reserve gave the optimists the upper hand.

The Asian markets were trading higher, however, many investors stayed on the sidelines ahead of the outcome of the hotly anticipated US Federal Reserve meeting. SGX Nifty was trading 33 points higher, indicating towards a positive start on the Dalal Street.

Commodity cues

Crude oil prices rose to a six-month peak on Tuesday as the dollar fell ahead of an expected decision by the Federal Reserve to inject more money into the economy and more OPEC producers signaled a tolerance for higher prices, as the crude oil futures for December up by $1.15, to settle at $83.90 a barrel.