RTTNews - The Indian market is likely to open on a cautious day note Tuesday on the back of weak global cues. Commodity-related stocks could be in the spotlight after copper hits a three month-low on Monday. Although some short covering and bargain hunting could be expected at lower levels, underlying sentiment would remain cautious and traders are likely to track global markets for direction.
Net sales by FIIs totaled Rs.1,226.49 crore on Monday, while domestic institutions purchased stocks worth Rs.460.32 crore, provisional data released by the BSE showed.
U.S. stocks saw a sharp pullback on Monday, as last week's disappointing data on the health of the consumer sparked a broad-based sell-off in equities. Nonetheless, some of the pessimism was moderated by the release of a report from the Federal Reserve Bank of New York showing that conditions for New York manufacturers improved for the first time in well over a year in the month of August.
A release from the National Association of Home Builders that showed a rise in homebuilder confidence also helped cut some losses. The Dow Jones Industrial Averaged closed down 2%, the Nasdaq Composite drifted down 2.75% and the S&P 500 index fell 2.43%.
The Indian ADRs also closed sharply lower across the board. Sterlite Industries slumped 8.63%, ICICI Bank plunged nearly 7%, Satyam Computers shed 6.36%, Reddy's Laboratories, MTNL and Wipro plummeted around 5% each, Infosys fell 3.13% and HDFC Bank gave off 2.75%.
Crude oil futures finished lower again on Monday, as lower global equities amid concerns about the pace of global economic recovery raised concerns about energy demand. After plunging to as low as $65.23 a barrel earlier in the session, crude oil finished off its lows at $66.75 per barrel, down 76 cents on the session. However, in Asian trading on Tuesday, crude oil is showing a modest recovery and is currently trading at $67.09 a barrel, up 0.51%.
The rupee fell 51 paise to close at Rs.48.96 against the dollar on Monday, as equities tumbled worldwide and the U.S. dollar rose against a basket of currencies.
On Monday, the Indian market plunged following broad-based sell-off in global markets on concerns about the pace of global economic recovery. Selling was across the board and realty, metal, auto, oil/gas and banking stocks bore the brunt of the selling pressure. Sustained selling all through the day pulled down the benchmark BSE Sensex to 14,785, down 627 points or 4.07% and the S&P CNX Nifty plummeted 192 points or 4.20% to 4,388.On the BSE, losers outnumbered gainers by 1930 to 671 and 74 stocks closed unchanged.
Stocks to Watch
Bharti Airtel is close to raising funds from banks to fund its proposed $23- billion merger deal with South Africa's MTN, reports suggest.
Housing finance major HDFC opened its Rs 4,300 crore fund raising exercise through the qualified institutional placement issue of non-convertible debentures on Monday evening.
Reliance Industries, RNRL and NTPC could be in focus after the Anil-Ambani group issued front page ads in leading newspapers, questioning the Petroleum Ministry's stance in the gas supply deal between NTPC and Reliance Industries.
TCS is close to signing a joint venture agreement with the Maharashtra government for an ambitious project that will provide citizens online access to government services, media said.
TVS Motors plans to launch a 100cc scooter and a motorcycle for the executive segment by the end of the current financial year, its chairman and managing director Venu Srinivasan said at the sidelines of the company's annual general meeting on Monday.
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