RTTNews - Monday, the Indian market may open flat with a positive bias on the back of mildly positive Asian cues. While U.S. stocks finished Friday's session on a mixed note,the major markets across the Asia-Pacific region are currently trading higher on optimism the recession is easing following an increase in Japanese industrial production.
Trading is likely to be volatile as traders look forward to the announcement of Railway Budget on Friday and the much-awaited Union Budget next Monday. Analysts differ on whether there would be a pre-budget rally, as stocks have already run up considerably in anticipation of a pro-business budget.
According to an analysis of MSCI Barra indexes, a measure of returns from various stock markets across the world for foreign investors, Indian stocks delivered a return of almost 60% thus far in the calendar year, outperforming their global peers. Given the possibility of disappointments in the Budget, fears of a sharp correction may restrict big gains.
Meanwhile, foreign funds resumed their purchases after selling consistently in the past 2 weeks. On Friday, FIIs bought shares worth Rs.551 crore on a net basis, according to BSE provisional data.
Crude oil futures closed below the $70 a barrel mark on Friday after a report showed savings in the US jumped to a 15-year high in May, signaling a slow recovery in household spending. In Asian trading on Monday, crude oil slipped further to $68.24 a barrel on concerns regarding the weak oil demand in the U.S.
Cement stocks could be in focus on reports cement prices may soften by Rs.3-5 per 50-kg bag next month due to demand slowdown and new capacity additions in July-August. Infrastructure stocks may rise in anticipation of increased infrastructure spending. Stocks such as Kalindee Rail Nirman and Titagarh Wagons could also be in the spotlight on hopes of a populous Railway budget.
State-run life insurer Life Insurance Corporation increased its stake in Bharati Shipyard by 2.62% to 9.66% after acquiring shares through open market transactions.
Higher costs of raw material, fuel, depreciation charges and foreign exchanges losses dragged India Cements' net profit by 10 percent for the fourth quarter ended March. Zen Technologies' standalone net profit jumped more than 3-fold to Rs.18.36 crore in the fourth quarter ended March.
Low-cost carrier Spicejet's net loss for the March quarter narrowed to Rs 7.82 crore from Rs.123.59 crore in the same quarter last year. Vijay Mallya has reached out to Abu Dhabi's Al-Nahyan royal family for an investment in Kingfisher Airlines, reports suggest.
Sterlite could be in focus after Mexico's largest mining company Grupo Mexico SAB increased its offer for bankrupt Asarco Llc. by $240 million (around Rs1,164 crore) to $3.1 billion, outbidding rival Sterlite Industries in the race to acquire US-based copper miner Asarco.
NTPC is reportedly eying opportunities for taking over sub-optimally performing State Electricity Boards to increase its revenues. Electrical and power equipment maker Havells India reported a 25% rise in its fourth quarter net profit.
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