Positive start likely on supportive global cues

On this first day of new month, the Indian markets are expected to begin on a positive note owing to gains in the global markets.

Headlines for the day:

Maruti set to invest Rs18000 cr in Gujarat

JSW Energy's $418-million CIC Energy deal called off

IL&FS power arm readies plan for 1,500-mw projects



Events for the day:

Major corporate action

India's monthly cement production & dispatches figures and monthly auto sales numbers to be out today
Export & import data for the month of April 2011
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

Almost attaining the three week highs and conquered the psychological 5,550 and 18,500 levels on their northbound journey. Bullishness seemed to be returning to the markets as investors aggressively piled up positions despite the bit of disappointment coming from the economy front.

On this first day of new month, the markets are likely to extend gains. The start is expected to be on a positive note on supportive global cues. The undertone of the markets looks good.

It is an event packed day, as India's monthly auto sales numbers and cement production & dispatches figures will be out from today, which may provide some direction to the markets. This will lead to some action in the auto and cement stocks. Also, India's export & import data for the month of April 2011 will be announced today.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian stocks worth a net of Rs118.60 crore on May 31, 2011 as compared to the net buy of Rs253.70 crore on May 30, 2011. The domestic investors have bought Indian shares worth a net of Rs151.50 crore on May 30, 2011.

Global signals

European markets hit a 2-1/2 week closing high on Tuesday (May 31, 2011), with appetite for riskier assets boosted by expectations a second aid package for Greece would be agreed, lowering the risk of a near-term debt restructuring.

US markets rose on Tuesday as as investors cheered a new bailout plan for Greece in spite of continuing weakness in the US economy.

The Asian markets were trading on a mixed note, as many investors were cautious ahead of key manufacturing data from China. SGX Nifty was trading 12 points higher, indicating towards a positive start on the Dalal Street.

Commodity cues

Crude oil prices rose 2% on Tuesday, lifted by the closure of a pipeline carrying Canadian crude to the United States and a decline in the dollar on new hopes for a debt bailout for Greece.