Market to open strong on positive global cues

Headlines for the day:

SpiceJet to raise Rs335 crore, strategic sale possible

P&G faces growing backlash over updated Pampers

3G bids: Govt to get at least Rs25,500 crore

Events for the day:

Major corporate action

Ex-date for dividend of Advanta India and ITD Cem India
Results: HCL Tech, Hindustan Zinc, Piramal Health, United Spirits
For more events, log on to Sharekhan.com

Pre-market report

Global signals

The European stock markets closed higher overnight, buoyed by strong US corporate results, notably from under-fire US investment bank Goldman Sachs and positive German data.

The US stocks rose on Tuesday as oil prices lifted energy shares and investors were upbeat about the overall profits recovery, even as some high-profile results fell short of lofty expectations.

In today's trade, the Asian markets were trading on a positive note. At the time of writing this report, SGX Nifty was trading 28 points higher.

Indian markets

Higher commodity prices, strong corporate earnings results dampened worries over the Goldman fraud case and pulled up the world indices with the strong positive bias. Few companies will be announcing its results today, the investors back home will be keenly waiting for those results. The Indian indices may open gap-up with the strong positive bias owing to the upbeat global recovery. The foreign institutional investors (FIIs), which where the net buyers from post the budget, yesterday, it were the net sellers of Rs475.70 crore. The Indian markets have been the slave of the foreign money over the years, thus one has to see the FIIs movement, which is one of the key determinant of the market movements.

Commodity cues

In the commodity space, the crude oil prices rose on Tuesday for the first time in three days as strong corporate earnings reports dampened worries over the Goldman fraud case, with the Nymex light crude oil for the May series rose by $2.00 per barrel, whereas in the metals space, the Comex Gold for the May series rose by $3.40 and the Comex Silver for the May series was up by $0.09 to a troy ounce respectively.

Daily trend of FII/MF investment in equities

On April 20, 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs475.70 crore, whereas the domestic mutual funds, on April 19, 2010, were the net sellers of the stocks to the tune of Rs119.60 crore.