Cautious start likely on Euro woes

Headlines for the day:
Bharti buys Zain Africa for $10 bn
Hindalco eyes double-digit growth in domestic demand
RIL's Haryana, Navi Mumbai SEZs get extension

Events for the day:
Major corporate action
Fatpipe Networks India IPO closes today
Ex-date for right issue of Suzlon Energy
Ex-date for dividend of State Bank of India, ITC
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares fell on Tuesday, hitting a near two-week closing low, with investors jittery after Fitch Ratings said the UK faced a formidable fiscal challenge and British Petroleum sinking on fresh oil spill worries.
The US stocks mostly rose in volatile trading on Tuesday, led by materials and financial shares, but investors shied away from big-cap technology shares on concerns about their European exposure.
In today's trade, the Asian markets were trading slightly lower on account of Euro-zone worries. SGX Nifty was trading merely one point lower.
Indian Indices
Yesterday, after holding stable for most part of the day, the markets fell sharply in the last hour, which led the Nifty to close below its psychological 5000 levels.
Asian markets fell for the third time in four days as the stronger yen dragged down Japanese exporters and on concern that the Europe’s debt crisis will worsen after Fitch Ratings called the U.K.’s fiscal challenge formidable.
Today, the Indian indices are likely to start on a cautious note. Scrip specific action can be seen from companies like Bharti Airtel as Bharti closed its deal with Zain Africa for $10 billion and in commercial vehicle stocks as their sales are expected to rise 15-25% in 2010-11. Oil & gas stocks will also be in focus ahead of its empowered group of ministers (EGoM) meet, which is scheduled to be held tomorrow (June 10, 2010)
The stocks will likely trade directionless until investors get a clearer picture on the impact of the European debt crisis to the global economy.
Commodity cues
In the commodity space, the crude oil prices edged higher Tuesday, ahead of an industry group's weekly inventory report and other supply and demand data slated for later in the week, with the Nymex light crude oil for the July series rose by $0.55 per barrel, whereas in the metals space, the Comex Gold for the July series surged by $4.70 to a troy ounce and the Comex Silver for the July series was up by $0.32 to a troy ounce.
Daily trend of FII/MF investment in equities
On June 08, 2010, the foreign institutional investors (FIIs) were the net sellers of the Indian stocks to the tune of Rs215.90 crore, whereas the domestic mutual, on June 07, 2010, were the net sellers of the stocks to the tune of Rs290.50 crore.