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Indian stock market morning report by Keynote Capitals (June 1, 2009, Monday, 7.00 a.m. GMT)

Views on markets today
- Indian markets closed strong on Friday with heavy gains on Friday on huge institutional buying. Real estate, capital goods and consumer durables stocks rallied.
- Market breadth was strong at around 3x on all over buying in large cap, mid and small cap stocks. FIIs and domestic institutions both were buyers of equities worth Rs273Cr and Rs873Cr respectively. Both NSE and BSE witnessed a surge in trading volumes on Friday on strong institutional buying. Deliverable volumes in top 10 traded stocks were robust, driven by Bharti Airtel, Reliance Industries, real estate stocks incl. DLF and Unitech. Reliance Capital traded on weak deliverable volumes.
- Asian markets are up today on robust Chinese manufacturing data, which shows China's economy is stabilising. It witnessed positive growth for the 3rd month in a row.
- We expect a positive opening for the Indian markets driven by global cues. Markets are witnessing strong institutional interest, which we believe will continue till the Union Budget on the expectations that the Government will push major reforms. However we would like to sound a note of caution - international prices of crude oil are showing no signs of cooling off and this could be a dampener for the markets.

Economic and Corporate Developments
- The Indian Rupee (INR) is strong this morning at 47.01/02 per USD, above Friday's close of 47.11/12.
- NYMEX Crude Oil (CL) is currently trading at $66.95 per barrel.

Buzzing Stocks
- Bharati Shipyard to make open offer for 20% stake in Great Offshore. It had acquired a 14.89% stake in the company earlier this month.
- Indian Oil, Bharat Petroleum and Hindustan Petroleum have raised aviation turbine fuel price by an average of Rs 108 per kilolitre.
- Transformers and Rectifiers to start production at 3rd plant in June. New plant expected to produce 4,000 MVA and earn Rs1.5bn a year.
- Madhusudan Industries, a sister company of Cera Sanitaryware has recently diversified into horticulture business by taking up a horticulture project.

Results to be announced today
Amara Raja Batteries, Kalyani Steels

US markets on Friday
US markets rose on Friday recording their third straight monthly advance. Rising commodity prices and natural resource companies fueled the rally. The weak dollar against world's major currencies lifted stocks of multimationals. Transport stocks saw a rally before GM's bankruptcy filing, which is expected to be filed today.