Gap-down opening on the cards

The Indian indices head towards a lower start tracking losses across the globe. The trend on the Dalal Street is likely to remain range bound.

Headlines for the day:

Essar eyes Indonesia, Australia resources to meet domestic demand

Kingfisher may lease more planes, eye PEs for funds

HPCL Mumbai refinery to shut half of capacity for two-month revamp



Events for the day:

Major corporate action
Ex-date for final dividend of Castrol India
For more events and news, log on to Sharekhan.com

Indian indices

Today’s opening is likely to be on a weak note owing to the negative global markets due to persistent concerns over global economic outlook.

The trend on the Indian bourses is expected to remain range bound. The undertone may continue to remain cautious, as markets would be eagerly waiting for the Reserve Bank of India’s policy review meet on June 16, 2011. FIIs’ buying and decline in crude oil prices may bring some respite.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian stocks worth a net of Rs146 crore on June 10, 2011 as compared to the net buy of Rs174.80 crore on June 09, 2011. The domestic investors have bought Indian shares worth a net of Rs44.90 crore on June 09, 2011.

Global signals

The European markets fell to a three-month closing low on Friday (June 10, 2011) and posted their sixth week of losses after downbeat Chinese trade data stoked concerns about the outlook for global growth and company earnings.

The Dow and S&P 500 closed out their sixth week of losses on Friday as further signs of a global economic slowdown set the stage for more losses ahead.

The Asian markets were trading lower following the Friday’s Wall Street losses. SGX Nifty was trading 20.5 points lower, indicating towards a negative start on the Indian bourses.

Commodity cues

Crude oil prices declined for a second day in New York before reports that may show slowing economic growth in the US and China, curbing fuel demand in the world’s two largest crude consumers.