Markets may extend gains on global rally

Better-than-expected US and China data boosted global stocks and may push the Indian markets higher at start.

Headlines for the day:

IOC may set up Rs 30,000-cr refinery in Gujarat

RIL strikes mega media deal

Adani Power to invest Rs 3,000 cr in solar power

Banks start year with sale of covered bonds

SEBI Board clears regulatory changes to allow PSU buybacks




Indian indices

The upbeat economic data from the United States and China eased some concerns over the health of the global economy. Investor risk appetite returned in the markets tracking improved global sentiment. The focus has been shifted from the euro zone worries as of now.

Today’s start is likely to be on a positive note in line with the strong global peers. The markets are expected to carry previous session’s gains today.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs39.10 crore on January 03, 2011. The domestic investors have bought Indian shares worth a net of Rs55.10 crore on January 02, 2011. The data is as per the SEBI website.

Global signals

The European stocks ended at a five-month closing high on Tuesday (January 03, 2011) after strong manufacturing data from the United States and China boosted investor confidence and helped shift attention away from the euro zone.

The US stocks kicked off the New Year with strong gains, as better-than-expected economic data around the globe buoyed investor sentiment on the first US trading day of 2012.

The Asian stocks rose on Wednesday (04 January 2011), as investor risk appetite returned after upbeat US and European economic data boosted global shares and commodities and hopes for improved growth outlook grew despite worries over the euro zone debt crisis. SGX Nifty was trading 4 points higher.

Commodity cues

US Crude Oil rose sharply on Tuesday, lifted by a report indicating growth in China's manufacturing sector and continued tensions between Iran and the West.