RTTNews - Tuesday, the Indian market is likely to open higher on the back of positive global cues. Net FII buying over the past two sessions and rapid advances of the southwest monsoon since Sunday may keep underlying sentiment upbeat, but volatility may persist ahead of the announcement of the Union Budget next Monday. FIIs bought shares worth Rs.292.4 crore on a net basis on Monday, provisional data from the BSE showed. According to SEBI, foreign funds bought shares worth Rs.672.90 crore on Friday.
Overnight, the major U.S. averages kicked off the week on a strong note amid some bargain hunting despite any prominent triggers. However, volumes were rather thin as some traders chose to stay on the sidelines ahead of the release of key economic data later in the week, which include data on home prices, consumer confidence, manufacturing and employment. The Dow Jones Industrial Average ended up 1.08%, the Nasdaq Composite rose a modest 0.32% and the S&P 500 index added 0.91%.
However, the Indian ADRs closed mixed. MTNL jumped 7.62%, Sterlite rallied 3.7%, Reddy's Laboratories rose 2.32% and Satyam gained 1.24%, but Infosys edged down 1.12%, ICICI Bank slipped 0.29%, Wipro declined 0.34% and HDFC Bank ended down 0.53%.
Crude oil futures jumped over 3% in New York trading on Monday amid tensions in crude-producing Nigeria and on China's reported plans to rapidly increase its strategic crude oil reserves. Reports suggested that China is planning to increase strategic crude oil reserves by 60% to 270 million barrels during the next five years. Gains in equity markets on renewed investor optimism about the prospects for an economic recovery also offered support. The US Energy Information Administration revised up its April U.S .oil demand estimate by 1.18%, though the data showed consumption was still 6.56% lower than a year ago. After settling at $71.49 a barrel on Monday, crude oil further extended its rise to $72.78 a barrel in Asian trading.
The rupee ended stronger at RS.48.10/11 against the dollar on Monday, its strongest close since June 17, helped by speculation that gains in the stock market will boost portfolio inflows.
The Indian market showed a modest gain on Monday, as profit taking in late trading amid valuation concerns and the delayed monsoon restricted big gains. While consumer durable, realty, metal and oil/gas stocks advanced sharply, IT stocks bore the brunt of the selling. Auto, FMCG and healthcare stocks also ended subdued. The BSE Sensex finished at 14,786, up 21 points or a mere 0.14% from its previous close, while the S&P CNX Nifty rose 15 points or 0.35% to 4,391, the BSE mid-cap index moved up 1.14% and the small-cap index added 1.50%. On the BSE, gainers outnumbered losers by 1686 to 964, with 73 stocks closing unchanged.
In corporate news, Wockhardt could be in focus on reports that it will sell more non-core businesses in the next 3-6 months. The board of Nagarjuna Constructions has approved raising Rs 550 crore through the QIP route.
The Registrar of Companies (RoC), in its report submitted to the ministry of corporate affairs on Maytas Infra, has alleged violation of many provisions under the Companies Act, 1956, including diversion of funds from an initial public offering, reports suggest.
Britannia Industries is reportedly set to stage a comeback into the ready-to-drink flavored milk market targeted at youth. Multiplex chain PVR may acquire DT Cinemas, a wholly subsidiary of DL Group, reports suggest.
Oil explorers Reliance Industries, Cairn and ONGC may rise after crude oil extended its rise towards $73 a barrel in Asian trading on Monday. State-run SBI is in talks to acquire a majority stake in Indonesia-based Bank Eksekutif, reports said.
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