Healthy start likely on strong global cues

The start today is likely to be higher tracking strong global markets. Auto shares will be in action on posting good January sales numbers.

Headlines for the day:

HDFC, others hike home loan rates

Car makers' sales up in 2011 amid slowdown fears

DLF to invest Rs400 crore per quarter to buy land



Events for the day:

Major corporate action

Ex-date for interim dividend of Sun TV Network, Edelweiss Capital
Ex-date for dividend of Walchandnagar Industries
Results: Bharti Airtel, Voltas, Jai Corp, Jet Airways, SJVN, Hero Honda
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

Indian markets seem to be more nervous and have been underperforming its global peers. The biggest concern is the persistent and consistent outflow on account of foreign institutional investor (FII), which has spooked the investor sentiment. Since five successive sessions, the markets are seen falling 200 to 300 points owing to FII selling, rising inflation and concerns over slowdown in economic growth.

However today, the markets are expected to see a strong pullback and may begin the trade on a bright note tracking healthy global markets. The car makers recorded impressive sales numbers for January despite the price rise due to increase in input costs; this will keep automobile companies’ shares in focus.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs900.50 crore on February 01, 2011 as compared to the net sell of Rs592.40 crore on January 31, 2011. The domestic investors have bought Indian shares worth a net of Rs414.80 crore on January 31, 2011.

Global signals

Strong manufacturing data from the euro zone and US on Tuesday (February 01, 2011) powered European shares to their biggest gains in nearly three weeks, with oil stocks further boosted by rising crude prices.

In the US, the S&P closed above 1,300 for the first time in 2-1/2 years and looked poised for more gains due to strong earnings and a surge in US manufacturing.

The Asian indices were trading higher. Markets in China and South Korea are shut today on account of Lunar New Year holiday. SGX Nifty was trading 53.5 points higher, suggesting for a strong start on the Indian bourses.

Commodity cues

Crude oil ended lower, snapping a two-session rally sparked by the turmoil in Egypt, but fell deeper in post-settlement trading after industry data showed that domestic crude inventories rose more than expected last week.