RTTNews - The Indian market may open unchanged on Tuesday on the back of mixed Asian cues this morning. The U.S. and London markets were closed yesterday for national holidays.

Trading could remain largely range bound on alternate bouts of buying and profit taking. Volatility may persist ahead of derivative contracts expiry on Thursday. Buying in midcaps and smallcaps may continue due to stretched valuations of frontline stocks.

On Monday, foreign institutional investors bought Rs.427.97 crore worth of shares on a net basis, while domestic funds bought shares worth Rs.197.68 crore, provisional data released by the stock exchanges showed.

In Asian trading, crude oil futures were trading lower at below $61 a barrel on Tuesday, ahead of OPEC's meeting later this week, where the group is widely expected to hold output steady. The Organization of the Petroleum Exporting Countries (OPEC) will meet on Thursday to review its oil supply policy and is expected to keep output targets steady while calling for improved compliance by its members.

The rupee snapped a 6-day winning streak and settled at Rs.47.28/30 against the dollar, down 18 paise on Monday, affected by demand for dollars from banks on behalf of oil companies. The dollar's rising trend against major global currencies in overseas markets also weighed on the currency.

The Indian market closed Monday's volatile session lower. An intra-day rebound proved short lived, as weak global cues and continued profit taking weighed on investor sentiment. Trading remained choppy all through the day and second-line stocks continued to outperform frontline stocks. After trading choppily in a range of 14,028-13,819, the BSE Sensex finished modestly higher at 13,913, up 26 points or 0.19% from its previous close. Meanwhile, the S&P CNX Nifty pared all its early gains to close at 4,238, down 0.02%.

On the BSE, the broad-based BSE 500 index rose a little over 1%, the mid-cap index gained 2.83% and the small-cap index jumped 5.01%. The market breadth was extremely positive. Advancers outnumbered decliners by 2469 to 315 and 30 stocks closed unchanged.

Stocks to Watch

HCL Infosystems may see some buying after it bagged a Rs.240-crore system integration order from state-run Bharat Sanchar Nigam (BSNL).

Jet Airways may rise after it reported better-than-expected results for the three months ended March. The airline's net profit rose to Rs.53-crore profit for the fourth quarter compared to a loss of Rs.221 crore in the same quarter a year ago.

Godfrey Phillips India could be in focus after the company disclosed that the KK Modi Group is acquiring a 10.8% stake in the company from US-based tobacco firm Philip Morris for an estimated Rs.100-125 crore. On Monday, the stock was locked at the 20% upper circuit limit.

Mangalore-based Karnataka Bank could move on reporting a 37% rise in its fourth quarter net profit. Tata Teleservices may see some activity after the telecom service provider entered into an exclusive partnership with Yahoo! India, the leading Internet company, to provide a compelling web experience and a unique user interface to all Tata Indicom customers.

Telecom operator Idea Cellular may be in focus after it entered TamilNadu with the launch of its GSM mobile services in 130 towns across the state. State-run Bank of Baroda may see some activity after the bank reduced interest rates on its deposits by 25-75 basis points.

Drug maker Ranbaxy Laboratories may come under selling pressure on reports that it could take a revenue hit of as much as $50 million (Rs236 crore) because of a delay in supplying a key ingredient to the UK-based AstraZeneca Plc. for the manufacture of its anti-ulcer drug Nexium.

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