RTTNews - The Indian market may open higher on Wednesday on the back of positive cues from the rest of the Asian markets. Consistent buying by foreign funds and hopes about significant increase in infrastructure investment by the government may keep sentiment upbeat, but volatility may persist due to profit taking.
Foreign institutional investors (FIIs) bought shares worth Rs.955.31 crore on a net basis on Tuesday, while net sales by domestic funds totaled Rs.143.21 crore, provisional data released by the Bombay Stock Exchange showed. On Tuesday, FIIs bought shares worth Rs.294.90 crore on a net basis, according to market regulator SEBI.
After being plagued by choppy trading for much of the session, stocks on Wall Street showed some life in afternoon trading on Tuesday, finishing largely on the upside. The Nasdaq Composite rose 0.96% and the S&P 500 index gained 0.35%, but the Dow Jones Industrial Average edged down a modest 0.02%.
The U.S. Department of Treasury announced that 10 of the largest U.S. financial institutions that borrowed money from the Treasury are planning on paying back their loans. President Barack Obama praised the move, noting that the government has turned a profit from the first round of repayments. He also offered cautious optimism that the financial system is stabilizing.
The Indian ADRs closed sharply higher across the board. Among the major gainers, Satyam Computers jumped 33.82%, Wipro rallied 4.66%, Reddy's Laboratories advanced 4%, HDFC Bank gained 3.11% and ICICI Bank added 1.47%.
Crude oil futures closed above $70 a barrel in New York trading on Tuesday for the first time this year, as the U.S. Energy Information Administration boosted its short-term energy outlook. Light sweet crude for July delivery settled at $70.01 per barrel, up $1.92 on the session, its best close since November 4. The US Energy Information Administration raised its world oil demand forecast for 2009 by 10,000 barrels per day from its May report, the first hike since September amid signs of an economic recovery. The agency also increased its estimate for demand in top consumer the United States.
The rupee ended stronger at Rs. 47.48/49 against the dollar, up about 0.2% on Tuesday on hopes of buoyant capital inflows amid strong investor sentiment.
On Tuesday, the Indian market bounced back sharply to close near the day' high after a steep fall in the previous session. Strong buying by long-term foreign funds and bargain hunting by retail investors helped stocks end higher across the board. After moving choppily in early trading, the BSE Sensex pulled back to hit a high of 15,161 before finishing at 15,127, up 461 points or 3.14% from its previous close. Likewise, the S&P CNX Nifty rose 121 points or 2.73% to 4,551. The broad-based BSE 500 index rose 3.04%, the mid-cap index moved up 3.15% and the small-cap index added 1.67%. Realty, IT and metal stocks led the gainers.
Stocks to Watch
IT stocks could be in the spotlight after an improved outlook from Texas Instruments lifted technology stocks on Wall Street overnight. Satyam Computers may extend its rally after the fraud-hit firm disclosed better-than-expected revenue and profit figures for the December quarter, January and February, lifting uncertainty surrounding its true financials. Oil-explorers like Reliance Industries, Cairn and ONGC may be in focus after crude oil futures surged past the $70 per barrel mark on Tuesday.
Maytas Infra's board has discussed and approved the construction of Greenfield airports at Gulbarga and Shimoga in Karnataka immediately.
Reports suggest that Dubai-based Damas is setting up a joint venture with Gitanjali group for single-brand retail trading in jewelery.
HDFC received an in-principle approval from its board for raising up to Rs.4,000 crore through qualified institutional placement of secured redeemable non convertible debentures with detachable warrants.
Tata Motors raised about Rs 457 crore by selling 11 million shares of Tata Steel or 1.5% equity to its promoter group entity and the group's holding company Tata Sons.
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