RTTNews - The Indian market is likely to extend losses on Wednesday as investors may resort to profit taking following the recent strong gains. However, the markets are likely to open in the green, tracking firm Asian markets and the modest gains overnight on Wall Street.
The lackdaisal performance of the south-west monsoon is likely to weigh on the markets. Meanwhile, the quarterly results of Indian companies have been encouraging so far, helped by lower costs. The combined net profit of 270 companies rose 43% to Rs 13,279 crore, on 11.3% growth in sales to Rs 1,01,409 crore in the quarter ended June 2009 from the year-ago period.
On Wall Street, stocks ended on a firm note on Tuesday with a slew of promising earnings reports keeping the mood positive. Testifying before the House Financial Services Committee, the U.S. Federal Reserve Chairman Bernanke stated that the U.S. economy is showing signs of stabilization and that the stimulus authorities pumped into the global economy late last year probably helped to avoid a collapse of the financial system. However, he has cautioned that the economy is still in a fragile state, with unemployment high and consumer spending shaky.
The Dow advanced 67.79 points or 0.8% to 8,915.94, the Nasdaq climbed 6.91 points or 0.4% to 1,916.20 and the S&P 500 rose 3.45 points or 0.4% to 954.58.
The Indian ADRs closed mixed on Tuesday. ICICI Bank slid 2.16%, HDFC Bank declined 0.72%, Satyam shed 5.82% and Wipro lost 1.17%. However, Infosys added 0.54%, Tata Motors gained 0.66% and MTNL rose 3.90%.
Crude oil gained for the fifth session in a row and finished at its highest level in almost three weeks on Tuesday. Investors looked ahead to the government's inventory report on Wednesday. Light sweet crude for August delivery settled at US$64.72, up 74 cents on the session. The August contract closed at the end of the session.
The partially convertible Indian rupee ended at 48.42/43 per dollar on Tuesday, 0.4% weaker than 48.21/48.22 at close on Monday.
The Indian market ended lower on Tuesday, ending a two-day gaining streak, as cautious undertone following sharp gains in recent sessions led to some profit taking. Despite positive global cues, the market hovered in the red all through the day, although it cut some of its loss in late trading. The BSE Sensex closed trading at 15,062, down 129 points or 0.85% from its previous close. Likewise, the S&P CNX Nifty fell 33 points or 0.74% to 4,469.
For comments and feedback: contact firstname.lastname@example.org