The market is likely to see a negative start on weak Asian stocks. Cement stocks may decline after the Competition Commission of India levied a penalty of nearly Rs 6300 crore on 11 cement companies. Asian markets declined on Friday after weak manufacturing data from the United States, Europe and China heightened fears over the outlook for global growth.

Telecom stocks may decline on reports the much-awaited meeting of the high-power ministerial panel on auction of telecom spectrum on Thursday was deferred indefinitely.

Key benchmark indices edged higher for the third straight trading session on Thursday, 21 June 2012 and attained seven-week closing highs after data showed resumption of buying of Indian stocks by foreign institutional investors on Wednesday, 20 June 2012. The BSE Sensex jumped 135.93 points or 0.8% to settle at 17,032.56, its highest closing level since 3 May 2012.

Foreign institutional investors (FIIs) sold shares worth a net Rs 257.29 crore on Thursday, 21 June 2012, as per provisional data from the stock exchanges.

The next major trigger for the market is Q1 June 2012 corporate earnings, which will start trickling from the second week of July 2012. HDFC announces Q1 results on 11 July 2012. Bajaj Auto reports Q1 results on 18 July 2012.

Asian stocks dropped on Friday after weak manufacturing data from the United States, Europe and China heightened fears of slowdown in the global economy. Key benchmark indices in Singapore, Japan, China, Taiwan, South Korea, Hong Kong and Indonesia were down by 0.46% to 1.97%.

US stocks declined on Thursday on mounting evidence that slowing manufacturing growth worldwide threatened corporate profits. The Dow Jones Industrial Average lost 251.35 points, or 1.96%, at 12,573.04. The Standard & Poor's 500 Index slipped 30.19 points, or 2.23%, at 1,325.50. The Nasdaq Composite Index fell 71.36 points, or 2.44%, at 2,859.09.