Pre-Market: Markets likely to drift lower

Eye on IIP data for April due later in the day

Benchmark shares indices ended their five-day winning streak on Monday after global rating agency Standard & Poor's said India may become the first BRIC country to lose the investment grade rating. This coupled with the IIP data for April due later in the day and weak global cues is likely to keep gains under check today.

Asian markets lost ground on Tuesday as a European bailout for Spain's debt-stricken banks failed to convince investors that the spread of the debt crisis in Europe will be halted.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.5 per cent, while Japan's Nikkei average opened down 1.7%, after
Wall Street fell sharply in a late sell-off. The Dow Jones industrial average fell 1.1% and the S&P 500 Index dropped 1.3%.
At 710 am Indian Standard Time, the SGX Nifty was trading at 5,006 – down 0.7%.

Among individual stocks, SBI could be in focus today on reports that it has temporarily exceeded RBI-prescribed credit exposure limit for
the fourth year in a row in 2011-12 with regard to loans given to RIL.

Auto stocks could be in focus after data showed that the sales of passenger cars slowed to a seven-month low at 2.8% in May.

Dhampur Sugar Mills’ board has approved the merger of JK Sugar with the company and shareholders of the latter will get 275 shares
for every 1,000 shares held.

BEML’s CMD, has been suspended by the Defence Ministry on a CBI recommendation to ensure fair investigation against him in the
controversial Tatra truck deal and other cases.