RTTNews - Wednesday, the Indian market is likely to open higher on the back of modest gains on Wall Street overnight. However, trading may remain range bound on alternate bouts of buying and profit taking following mixed Asian cues. As per provisional data released by the BSE, while FIIs bought shares worth Rs.219.10 crore on a net basis on Tuesday, net purchases by domestic financial institutions totaled 253.29 crore.
U.S. stocks ended Tuesday's trading on a positive note amid some late session buying interest. On the economic front, the National Association of Realtors released a report showing that pending home sales growth in June exceeded economist estimates by a wide margin. Earlier, the Commerce Department released a report showing that personal spending increased by slightly more than expected, while personal income fell by more than expected. The major averages showed a notable upward move going into the close, climbing back above the unchanged line. The Dow Jones Industrial Average closed up 0.36%, the Nasdaq Composite advanced 0.13% and the S&P 500 index rose 0.3%.
Meanwhile, the Indian ADRs closed mixed. Satyam Computers soared 7.41%, Infosys advanced 1.28%, Wipro rose 0.79%, Reddy's Laboratories gained 0.64% and MTNL added 0.46%, but Sterlite eased 3.21%, HDFC Bank fell 0.42% and ICICI Bank slipped 0.81%.
Crude oil futures snapped a 3-day rally, ending down 16 cents or 0.22% at $71.42 a barrel on Tuesday, as traders booked profits after recent gains. However, in Asian trading on Wednesday, crude oil rose towards $72 a barrel after inventory data from the American Petroleum Institute showed late Tuesday that U.S. crude stocks unexpectedly fell 1.5 million barrels last week. Traders also look forward to inventory data from the U.S. Energy Administration Department due later in the day.
After an early surge to 47.43, the rupee pared all its gains and ended down by eleven paise at Rs.47.74/75 against the dollar on Tuesday, weighed down by dollar buying by importers and weakness in the domestic stock market.
On Tuesday, the Indian market snapped a 3-day rally and ended with a modest loss, as weak global cues led to some profit taking after recent gains. The BSE Sensex moved in a range of 16,002-15,699 before finishing off the day's low at 15,831, down 93 points or 0.59% from its previous close and the S&P CNX Nifty fell 31 points or 0.66% to 4,680. On the BSE, gainers outnumbered losers by 1482 to 123. While healthcare, power, realty and IT stocks bore the brunt of the selling pressure, select consumer durable, auto, FMCG and oil/gas stocks ended in positive territory.
Stocks to Watch
ABG Shipyard, which is slugging it out with rival Bharati Shipyard to acquire Great Offshore, has raised its open offer price for a controlling stake in Great Offshore by more than 15% to Rs 520 per share.
Bharti Airtel is in the race to acquire Sri Lanka's Tigo network which has been put on sale by its parent, Millicom International Cellular, to treble its user base, reports suggest.
Mahindra & Mahindra's (M&M) farm equipment division reported an 88% increase in domestic tractor sales for July on the back of government's increased focus on agriculture and rural infrastructure in the budget.
Leading steel producers, including SAIL, Tata Steel, JSW and Essar on Tuesday hiked prices of flat steel products by up to Rs 1,000 a tonne on account of improving demand in the country, reports said.
Orient Abrasives fixed August 13 as the record date for the purpose of issue of bonus shares.
Leading private sector lender Axis Bank plans to raise around Rs 5,000 crore through a fresh round of equity offerings to ramp up its tier-I capital to above 11%, media said. The company's board passed an enabling resolution for share placement yesterday.
Global ratings agency Standard & Poor's Ratings Services on Tuesday lowered its long-term corporate credit rating on Tata Motors to 'B' from 'B+', citing challenging operating performance of its struggling British luxury car unit Jaguar Land Rover.
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