Markets may extend rally on euro zone hopes

Hopes that the European leaders are finally taking action to protect the continent's banks from its festering sovereign debt crisis have been driving the sentiments. Today’s start is likely to be on a strong note.

Headlines for the day:

UB Holdings to raise borrowing power
Maruti cuts output at Gurgaon plant
Wipro to take on Godrej in men's soap segment
Government may soon free interest rates
MRF eyes cos abroad to offset high duty



Events for the day

Results: CMC, Aanjaneya Lifecare, Goa Carbon, Vertex Securities

Indian indices

The investor mood seems to be good after a pledge from German and French leaders to come up with a plan by the end of the month to tackle Greece's confidence-sapping debt woes and recapitalise European banks.

Tracking rally across the globe, the Indian markets may open the trade on a strong note, extending previous sessions’ gains.

Daily trend of FII/MF investment in equities

The FIIs have bought Indian stocks worth a net of Rs491.30 crore on October 10, 2011. The domestic investors have bought Indian shares worth a net of Rs103.70 crore on October 05, 2011. The data is as per the SEBI website.

Global signals

The European stocks rose for a fourth day on Monday (October 10, 2011), on optimism that a plan devised by France and Germany would help resolve the euro zone debt crisis and shore up the region's banking sector.

The US Stocks jumped 3% on Monday, extending gains into a second week as a pledge by German and French leaders boosted hopes that the euro-zone debt crisis may be resolved.

The Asian stocks rose on Tuesday (October 11, 2011), driving a regional benchmark index higher for the fourth straight day, after the US and European shares jumped in response to a pledge by German and French leaders to stem Europe’s debt crisis. SGX Nifty was trading 43 points higher, indicating a strong opening on the Dalal Street.

Commodity cues

Crude Oil rose nearly 3% on Monday after a strike halted Kuwait's crude exports and France and Germany pledged to come up with a plan to tackle the euro zone crisis.