Views on markets today

- Indian market corrected yesterday on FII selling and profit taking in oil and gas, real estate, metals and power stocks. Increasing uncertainties in global economies and June quarter results led FIIs to sell stocks all over the world, also impacting the Indian markets. However, buying from domestic institutions supported the markets. FIIs were net sellers of the equities worth Rs300Cr while domestic institutions bought equities of Rs123Cr.

- Market breadth was fairly negative at 0.75x led by the selling in the large cap stocks. Both trading volumes and deliverable volumes on top 10 traded stocks remained weak. However, it is a positive sign, as apparently investors have become caution post the recent rally. Reliance Industries witnessed high deliverable volumes while Tata Steel, Reliance Capital and Relianc Infrastructure traded on weak deliverable volumes.

- Asian markets dropped sharply this morning due to increasing global worries, weak overnight close of the US markets and a rising yen. Both the Nikkei and the Hang Seng dropped by almost 3%.

- We expect a weak opening for the Indian markets following the global cues. However, a bounce back from lower levels cannot be ruled out, as technical support lies in the 13500-14000 range. We may witness stock specific action. Reports of gas find may provide momentum to ONGC stock, while falling copper prices may impact Sterlite Industries.

Economic and Corporate Developments

- The rupee (INR) latest quote: 48.62 per USD.

- NYMEX Crude Oil (CL) is currently trading at $66.70 per barrel.

- Indian petroleum minister has said that the Government had no immediate plans to raise retail prices of petrol and diesel.

Buzzing Stocks

- Reliance Industries has signed gas sale agreements with steel makers including Essar Steel and Ispat Industries for supplying 3.75 mmcmd of natural gas from its offshore Krishna Godavari-D6 basin.

- Jindal Saw has secured orders worth Rs10bn for supplying pipes in both domestic and international markets.

- Pantaloon Retail plans to invest around Rs350Cr in the next one year for expansion of its hypermarket chain Big Bazaar.

- Siemens has won a Rs1.12bn order from Vedanta Aluminium to provide high voltage power distribution systems for Vedanta's Orissa smelter expansion, scheduled to be completed by 2010.

- MIC Electronics has been awarded a Municipal Corporation of Delhi (MCD) contract, for rights for advertisement through 50 LED Screens at selected market areas under the jurisdiction of MCD. The contract is for a period of 5 years, extendable by another 2 years.

- Rail wagon maker Texmaco will raise up to Rs2bn via preferential allotment, QIP or other means.

- Gokul Refoils & Solvent Ltd has established an Ultra modern new manufacturing facility (Edible Oil Refinery) for 1000 TPD at Haldia, West Bengal, to be inaugurated on June 24, 2009.

Results to be announced today
Religare Enterprises, Bilpower, Cyber Media

US markets

The US markets plunged 2.4% on an extremely pessimistic economic forecast for 2009 from the World Bank. The bank is expecting growth to decrease by 2.9% shaking confidence in the current rebound. The fear index VIX surged up over 13% intraday as traders scrambled to protect their holdings with derivatives. Financials and commodities led the stocks down. Losses were further fuelled by news that the World Bank cut its forecast for major economies like that of the US. The market breadth was sharply negative, with losers beating the gainers more than 6 to 1. Drug retailer Walgreen weighed on the group after posting quarterly earnings results that missed the consensus estimate.

Key events today
Release of May existing home sales data