Wednesday, the Indian market is likely to pullback on profit taking dragged down by heavy losses on Wall Street overnight for the second successive day. Markets across the Asia-Pacific region are also trading sharply lower this morning. While Hong Kong's Hang Seng index is tumbling nearly 4%, Japan's Nikkei 225 index is losing 1.97%, China's Shanghai Composite index is down 2.01% and South Korea's KOSPI is moving down 2.13%.

Additionally, apprehensions about the quality of earnings for the March quarter and the uncertain outcome of the impending general elections may keep investor sentiment subdued. The extent of FII buying and the direction of US index futures may influence market movement for the day.

On a net basis, foreign funds bought shares worth Rs.196.74 crore on Monday, according to data released by the Bombay Stock Exchange. Meanwhile, data released by the Securities and Exchange Board of India showed that FIIs have pulled $83 million out of Indian stock market over the last five trading sessions thus far in April.

After ending the previous session mostly lower, stocks on Wall Street saw some further downside during trading on Tuesday, as traders expressed some anxiety about the upcoming earning season and stocks' ability to sustain the recent upward move in light of expectations of weak quarterly results. The major averages all ended the day firmly in negative territory, pulling back further off their recent highs, as traders continued to do some profit taking. The Dow Jones Industrial Average fell 2.34%, the Nasdaq Composite drifted down 2.81% and the S&P 500 index moved down 2.39%.

The Indian ADR also closed in the red across the board. Among the major losers, Satyam Computers plunged 8.93%, MTNL plummeted 6.27%, Wipro tumbled 3.72%, HDFC Bank fell 3.48% and Sterlite Industries ended down 3.07%.

In Asian trading, crude oil is currently down nearly 2% at $48.21 a barrel in electronic trading. Light sweet crude for May delivery closed down $1.90 at $49.15 a barrel on the New York Mercantile Exchange on Tuesday amid demand concerns on signs of a deepening global economic downturn. Traders now look forward to the weekly inventory report from the U.S. Energy Information Administration or EIA, scheduled to be released later in the day.

Stocks to Watch

Fortis Healthcare could be in focus on reports that the group is actively looking at more acquisitions to expand its existing 27- hospital network.

Tata Steel may be in focus on reports about improved performance in March.

Goodricke Group may move on reports that it is stepping up its presence in the value-added segment and has firmed up plans to introduce ready-to-drink teas in the country shortly.

Tata Motors could see some activity on reports that it will set up in Myanmar a heavy truck manufacturing facility with a capacity of 1,500 units per annum. In another significant development, the board of the Luxembourg-based European Investment Bank is learnt to have approved a £340 million (Rs.2, 500 crore) loan to the Tatas-owned Jaguar Land Rover (JLR) to support the company's investments in environmental technologies.

Telecom stocks may come under selling pressure amid reports that the department of telecommunication is looking to change the way telecom companies share revenues with the government following allegations about misreporting of revenues.

DLF may see some activity following reports that it is in talks with several hotel companies to raise nearly Rs.900 crore in the next three months through the sale of 8-9 land parcels that were marked for hotel projects.

TCS may rise on reports that it has bagged a $80 million outsourcing contract from UK's Child Maintenance and Enforcement Commission.

ITC may move on reports that it has chalked out a three-pronged strategy to scale up its packaging business.

Auto stocks may rise following reports that falling steel prices could improve bottomline of automobile companies in the coming months.

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