Weak global cues to drag markets lower at start

The start is expected to be on a weak note on account of un supportive global cues. Weekly inflation numbers will be announced today.

Headlines for the day:

LIC launches new health insurance plan

Cairn Energy may give up non-compete fee on Vedanta deal

Shipping Corp may place orders for 24 ships in FY12



Events for the day:

Major corporate action

Weekly inflation to be announced today, to view the update on this, kindly log on to Sharekhan.com at 12 pm.
Timbor Home IPO and VMS Industries closes today

Pre-market report

Indian indices

Today's opening is likely to be on a sluggish note owing to the weakness in the global markets. The heightened worries about the global economic outlook, after disappointing US manufacturing and employment levels spurred concerns on global economic recovery.

The Indian markets are expected to remain sideways and follow global trend. The downside may not be much right now but the upside remains capped. Weekly inflation readings will be out today and markets may witness volatility. Healthy buying from foreign institutional investors may keep the sentiments in control.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian stocks worth a net of Rs1,261.30 crore on June 01, 2011 as compared to the net buy of Rs118.60 crore on May 31, 2011. The domestic investors have bought Indian shares worth a net of Rs82.10 crore on May 31, 2011.

Global signals

European markets ended sharply lower on Wednesday (June 01, 2011) as risk appetite waned after data showed a slowdown in US manufacturing activity in May and a much lower than expected increase in US private sector employment.

Wall Street ended a four-day rally with its worst session since August on Wednesday and could suffer more losses in coming days as investors faced more signs the economic recovery is fading.

The Asian markets were sharply lower on Thursday on heightened concerns about the global economic outlook. SGX Nifty was trading 57 points lower, indicating towards a negative start on the Indian bourses.

Commodity cues

Crude oil prices fell to almost $100 a barrel Wednesday, after disappointing readings on US manufacturing and employment levels spurred concerns about oil demand.