Sensex may see a negative opening

Today’s start on the Dalal Street is expected to be in the red zone on the back of negative global markets. Uncertainty over global economic recovery is a concern

Headlines for the day:

Maruti workers-management talks to resume today

RIL may lose bellwether status

Hindustan Sanitaryware takes 60% in Garden Polymers



Events for the day:

Major corporate action

Ex-date for dividend of BNK Capital Markets
Ex-date for interim dividend of Sundram Fasteners
For more events and news, log on to Sharekhan.com

Pre-market report

Indian indices

Negative global cues have set the stage for a lower start on the Dalal Street. The Indian markets may witness buying, but the overall mood will remain cautious as the government may decide on raising fuel prices on Thursday (June 09, 2011). A price rise will trigger an upward push in the inflation rate due to the cascading effect on other goods and services

The most positive factor is that the progress of monsoon is as per the schedule. Increase in FII inflows is also a positive trigger for the markets.

Investors should remain cautious while picking stocks. There are several stocks that have come down quite significantly from their peaks due to changes in the macroeconomic environment. There is a possibility of further corrections. Uncertainty over global economic recovery is another concern.

Daily trend of FII/MF investment in equities

The FIIs have purchased Indian equities to the tune of Rs150.80 crore on June 03, 2011. The local investors have sold Indian equities worth a net of Rs142.70 crore on June 02, 2011.

Global signals

The European stocks ended lower on Friday (June 03, 2011) and posted their sharpest weekly loss in two and a half months, as disappointing US jobs data added to concerns over the economic recovery.

The Wall Street capped off a fifth straight week of losses on Friday and Treasuries rose as much slower-than-expected US job growth stoked fear that the world's largest economy was in a protracted slowdown.

Most of the Asian indices were closed on Monday (June 06, 2011), which include Shanghai Composite, Hang Seng, Seoul Composite and Taiwan Weighted. While indices like Nikkei, Jakarta Composite and Straits Times were trading on a negative note. SGX Nifty was down 38 points.

Commodity cues

Crude oil fell on Friday, capping the biggest weekly decline in a month, as the US jobless rate climbed to the highest level this year, adding to concern that a slower economic recovery will curb oil demand.