Gap-down opening seen on weak global cues

Headlines for the day:

Diesel prices will also be freed, says PM

RCF plans $1.5-billion fertiliser plant in Ghana

Tata asks govt to delay 3G-spectrum allocation



Events for the day:

Major corporate action

Ex-date for dividend of Bank of Maharashtra, Kotak Mahindra Bank
Results: Ashapura Minechem, Gateway Distriparks
For more events and news, log on to Sharekhan.com

Pre-market report

Global signals

The European stocks extended their sharp losses on Tuesday (June 29, 2010) afternoon, breaking a key support level and falling along with the US shares as grim data on the US consumer confidence fuelled worries over the economic recovery.

The US stocks and interest rates plunged on Tuesday after signs of slowing economies from China to the US spooked traders who were already uneasy about a global recovery. The Dow fell 268.22 points, or 2.7%, to 9,870.30, its lowest close since June 7.

The Asian markets tumbled in their trade, hammered by sharp losses on the Wall Street, with exporters taking a beating in Japan on the yen's strength as risk appetite evaporated. SGX Nifty was trading 59 points lower.

Indian Indices

After gaining 200 points on Monday (June 28, 2010), the Sensex fell 240 points yesterday, thus reversing all its gains. The China cracked in the trade and the bad news soon seeped into the Indian markets as well, this resulted in panic among the investors.

The Indian markets, which have forever been impacted by the global factors, are likely to witness a weak start. The sentiments are likely to remain sour all through the day today. But the markets may continue to remain range-bound.

The most of the public sector banks fixed their base rate yesterday. This includes — State Bank of India (SBI) set its base rate at 7.5% while Punjab National Bank (PNB), Bank of Baroda (BoB), Union Bank, Central Bank of India, Bank of Rajasthan and Indian Bank announced that their base rate will be 8%. All the private banks are expected to announce their rates today. This new base rate may impact the investors and the banking stocks will be eyed.

Commodity cues

In the commodity space, the crude oil prices slipped, with the Nymex light crude oil for the August series declined by $2.31 per barrel. In the metals space, the Comex Gold for the July series rose by $3.80 to a troy ounce and the Comex Silver for the June series was down by $0.08 to a troy ounce.

Daily trend of FII/MF investment in equities

On June 29, 2010, the FIIs were the net buyers of the Indian stocks to the tune of Rs880.20 crore, whereas the domestic mutual, on June 24, 2010, were the net sellers of the stocks to the tune of Rs282.70 crore.