Healthy start likely owing to firm global cues

The markets are likely to extend its gaining momentum and start the session on a strong note following the supportive global peers.

Headlines for the day:

Patni seeks more details from iGate

HDFC Bank raises deposit rates by up to 1.25%

ONGC, GAIL sign pact for marketing gas



Events for the day:

Major corporate action

Ex-date for interim dividend of India Nippon Electricals
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Pre-market report

Indian indices

Markets started off 2011 in positive terrain supported by strong auto sales in December 2010 and optimistic rally across the globe. The gaining momentum is likely to be extended in today's session due to strong global cues.

Indian markets are looking attractive despite their high valuations because economic growth is likely to accelerate. Return of foreign investors funds post vacations will lift volumes on the bourses. However, caution prevails ahead of the start of earnings season later in the month.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian stocks worth a net of Rs616.70 crore on January 03, 2011 as compared to the net buy of Rs2,352.70 crore on December 31, 2010. The domestic investors have sold Indian shares worth a net of Rs233.50 crore on December 28, 2010.

Global signals

European markets ended higher on Monday, starting the new year with a broad-based rally led by construction and industrial shares as softer-than-expected factory inflation data from China eased concerns of a tightening in monetary policy.

US stocks greeted the new year with a rally on Monday as encouraging signs about the outlook for manufacturing around the world prompted investors to inject new money into the market.

Asian markets were trading higher supported by Wall Street's strong start for the year. SGX Nifty was trading 15.5 points higher, indicating for a positive opening on the Indian markets.

Commodity cues

Crude oil prices rose to a 27-month peak on Monday as upbeat European and US manufacturing data and forecasts for cold weather reinforced optimism about economic and energy demand growth. Crude for February delivery gained 17 cents to settle at $91.55 a barrel.