Markets may start strong on positive global cues

The markets may see a strong opening on account of gains across the globe and are likely to remain choppy ahead of June series F&O expiry.

Headlines for the day:

LIC acquires 10% stake in Andhra Bank

CCEA may decide on Cairn-Vedanta deal tomorrow

Lanco Infratech faces threat of export licence review in Australia




Events for the day:

Major corporate action

Readymade Steel India IPO closes today
Ex-date for dividend of Bajaj Auto, Ashok Leyland
Ex-date for final dividend of DB Corp, Dabur India
For more events and news, log on to Sharekhan.com

Indian indices

The trading on the Dalal Street is expected to start on a strong note tracking the positive trend around the global indices on increasing optimism for a viable Greek bailout. The Sensex has rallied over 900 points in the last four sessions since Thursday (June 23, 2011).

The markets are expected to move sideways, lacking any significant upside triggers as sentiments may remain cautious amid speculations that the recent upsurge may be a bull trap and that a correction could be around the corner. The markets are likely to remain choppy, after a short covering rally, till June series F&O expiry.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian stocks worth a net of Rs1790.90 crore on June 28, 2011 as compared to the net buy of Rs1021.90 crore on June 27, 2011. The domestic investors have sold Indian shares worth a net of Rs83.40 crore on June 27, 2011.

Global signals

The European markets came off highs on Tuesday (June 28, 2011) following some downbeat comments by European Competition Commissioner Joaquin Almunia and worries about Greece beyond the austerity vote on Wednesday.

The US markets rose for a second day on Tuesday on optimism that a solution to Greece's debt crisis was near, although low volume indicated underlying nervousness in the market.

The Asian markets were trading higher except Shanghai Composite, on growing optimism for a viable solution to Greece's debt crisis. SGX Nifty was trading 44 points higher, indicating towards a healthy start on the Dalal Street.

Commodity cues

Crude oil prices rose more than 2% on Tuesday on optimism that Greece can pass an unpopular austerity program as Europe fashions a solution to Athens' debt woes and also on lift from a weak dollar.