RTTNews - Favorable Asian cues suggest that the Indian market could open higher on Tuesday morning after a sharp correction in the previous session. Additionally, significant improvement in monsoon rainfall over key farming regions and a positive June-quarter GDP report could lead to fund buying at lower levels.

Net sales by overseas investors totaled Rs.270.85 crore on Monday, while domestic institutions purchased shares worth Rs.18.65 crore, provisional data released by the BSE showed. According to market regulator SEBI, foreign institutional investors mopped up shares worth Rs.1,092.70 crore on Friday. The cumulative FII inflow totaled Rs 40,284 crore till 28 August in the calender year.

Currently, most of the Asian markets are trading higher after opening on a weak note. The New Zealand market is down over 1% and Shanghai is up a modest 0.34%.

On Wall Street, stocks remained mostly negative throughout the trading day on Monday following a massive sell-off in the Chinese market. Still, with a slew of economic reports due for release later this week, the major averages moved well off their lows going into the close.

Traders largely shrugged off the results of the Institute for Supply Management - Chicago's survey of regional manufacturing activity, which showed that activity unexpectedly reached neutral territory in August following ten consecutive months of contraction. The Dow ended lower by 0.5%, the Nasdaq Composite fell 0.97% and the S&P 500 index gave off 0.81%.

The Indian ADRs also closed mostly lower. Sterlite Industries tumbled 3.74%, Infosys and Reddy's Laboratories fell over 2% each, MTNL moved down 1.54%, ICICI Bank eased 1.61%, Wipro gave off 1.13% and HDFC Bank slipped 0.74%, but Satyam Computer Services soared 21.53% on reports it would restate its accounts by the end of this year.

Crude oil futures plunged below $70 a barrel on Monday as stocks around the world fell, renewing concerns for energy demand. With the drop, oil gave back a good portion of its monthly gains. Light sweet crude for October delivery dropped to as low as $69.13 earlier in the session before finishing at $69.96, down $2.78 or nearly 4% on the session. In Asian trading on Tuesday, crude oil is currently trading little changed at $70 a barrel.

The rupee ended weaker by 0.4 percent at Rs.48.83/84 on Monday on fears about portfolio outflows after stocks across the Asia-Pacific region drifted lower on profit-taking amid concerns surrounding China.

The Indian market ended Monday's session sharply lower despite the release of a positive GDP report for the June quarter. Considerable amount of profit taking following gains in the past seven successive sessions and weak Asian markets weighed on market movement. After moving in a range of 15,821-15,590, the BSE Sensex finished at 15,667, down 256 points or 1.61% and the S&P CNX Nifty fell 70 points or 1.48% to 4,662. However, the BSE mid-cap index moved up 0.33% and the small-cap index rose 0.51%.

Stocks to Watch

Shipping stocks may see some selling on fears that freight rates could fall by up to 50% on the concerns arising from China.

State-run power firm NHPC will make its debut on the stock exchanges today.

Tata Motors posted a consolidated first-quarter loss of Rs.329 crore compared to a standalone net profit of Rs.514 crore in the year-ago quarter. The results were in line with market expectations.

Kingfisher Airlines said it planned to raise nearly Rs.1,000 crore through a combination of GDR and rights issue.

The first phase of the NTPC-BHEL power equipment project at Mannavaram in Chittoor district of Andhra Pradesh will be completed by 2011-12, the state chief minister Y S Rajasekhara Reddy said on Monday.

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