Gap-up start likely on strong global cues

The Indian equities head towards a positive start on the back of strong support from the global counterparts.

Headlines for the day:

JSW Steel leads race for Ispat Industries

Tata Steel in talks to sell South African assets

Coal India, Shipping Corporation sign MoU for coal import



Events for the day:

Major corporate action

Ex-date for final dividend of Monnet Ispat, Glodyne Technoserve
Ex-date for dividend of Minal Industries, Bartronics India
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

Markets may get a firm start following supportive global cues. The market outlook seems good, as the global markets are supportive to lift the Indian markets and extend previous session gains.

On the other hand, market is expected to trade sideways in a lacklustre trade, as foreign institutional investors (FIIs) are likely to stay away from participation ahead of Christmas holidays. Also markets may seek global cues for direction due to lack of domestic cues.

Banking shares may remain in pressure amid recent concerns as it has been witnessed in last few sessions.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs113.40 crore on December 20, 2010 as compared to the net sell of Rs10 crore on December 16, 2010. The domestic investors have sold Indian shares worth a net of Rs90.80 crore on December 15, 2010.

Global signals

European stocks hit a 27-month high on Monday, with mining shares rise on buoyant metal prices, and utilities stocks catching up with the rest of the market's recent gains.

The Wall Street closed mixed on Monday after a day of light trading, weighed down by sharp drops in shares of American Express and Boeing. The Dow Jones Industrial Average slipped 0.12%, while the S&P 500 index, gained 0.25%.

The Asian markets were trading higher on Tuesday with markets in Seoul and Tokyo rising amid cooling tensions on the Korean peninsula. SGX Nifty was trading mere 10.5 point higher, indicating to have a positive start on the Dalal Street.

Commodity cues

Crude oil prices rose a second straight session on Monday, lifted by strong gasoline futures ahead of expected holiday demand. The crude oil futures for January 2011 gained by $0.79, to settle at $88.81 a barrel.