RTTNews - Tuesday, the Indian market is likely to open on a strong note, aided by the overnight surge on Wall Street on the back of an analyst upgrade for U. S. banks. The other Asian markets are also trading sharply higher across the board this morning.
Stock-specific action could be seen after June quarter results from bellwether Infosys, Axis Bank and Motilal Oswal exceeded market expectations. Several bluechip companies such as HDFC Bank, Blue Dart, PFC and Sintex Industries will declare their results today.
However, in the absence of significant positive triggers, intermittent profit taking may cause some volatility. Continued FII selling may also restrict big gains. On Monday, while domestic institutional investors bought shares worth Rs.742.26 crore, FIIs sold shares worth Rs.559.23 crore, provisional data released by the BSE showed. On Friday, net sales by FIIs totaled 623.20 crore, according to market regulator SEBI.
Overnight, positive analyst comments on the financial sector helped Wall Street surge higher with bank stocks leading the way. The major averages saw some further upside going into the close, ending the session at their best levels of the day. The Dow Jones Industrial Average closed up 2.27%, the Nasdaq Composite index moved up 2.12% and the S&P 500 index rose 2.49%.
In economic news, the U.S. federal deficit topped one trillion dollars for the first time ever, according to Treasury Department statistics released on Monday. The Department reported that the federal deficit in June totaled $94.3 billion, pushing the total in the current fiscal year to nearly $1.1 trillion..
Meanwhile, the Indian ADRs closed mixed. Infosys edged up 0.78%, Sterlite advanced 3.39%, ICICI Bank rallied 4.76% and HDFC Bank added 2.25%, but MTN fell 1.33%, Wipro eased 2.35%, Reddy's Laboratories declined 2.06% and Satyam Computers ended down 3.69%.
Crude oil futures drifted lower on Monday, briefly touching their lowest level in almost two months, on concerns that a gloomy economic outlook could curb energy demand. After closing at $59.69 a barrel, down 20 cents in New York trading on Monday, the commodity is now trading firm at $60.06 in Asian trading.
The rupee closed off the day's low at Rs.49.08/09 against the dollar on Monday, down 0.1% from its previous close amid renewed worries about FII selling. FIIs withdrew over $1 billion from Indian equities thus far since the budget was presented on July 6.
On Monday, the Indian market extended its loss further amid weak overseas cues and concerns about the progress of monsoon, but short covering at lower levels helped stocks cut their losses in the afternoon. The BSE Sensex opened lower at 13,406 and fell to a low of 13,220 before finishing at 13,400, down 104 points or 0.77% from its previous close.
Likewise, the S&P CNX Nifty fell 30 points or 0.75% to 3,974, while the broad-based BSE 500 index lost 1.47%, the mid-cap index moved down 2.84% and the small-cap index shed 3.38%. The market breadth on the BSE was extremely negative, as losers outnumbered gainers by 2007 to 569, with 56 stocks closing unchanged. Sector-wise, consumer durable, realty, metal and auto stocks bore the brunt of the selling, but IT stocks finished in positive terrain.
Stocks to Watch
ONGC Videsh, the overseas arm of state-run ONGC, has initiated the due diligence process and is expected to put in a formal bid for a 30% stake in Jubilee oil fields in Ghana from US-based Kosmos Energy, reports suggest.
Foreign fund house Citigroup Global Markets (Mauritius) sold 12,55,796 shares of Bajaj Hindusthan at Rs.137.05 per share through an open market transaction.
Domestic airlines carried 3.69 million passengers in June from 3.50 million in the corresponding month last year, helped by promotional fares and improvement in flight occupancy, according to Directorate General of Civil Aviation data released on Monday.
Tata Power's request to government for immediate gas supply from Reliance' s KGD6 fields has been deferred by the power ministry as it doesn't have a gas-based turbine. reports said.
GSM operators such as Bharti Airtel, Idea Cellular and others have added 8.89 million subscribers in June compared to 8.3 million additions in the previous month, the Cellular Operators Association of India (COAI) said in a statement.
Ashok Leyland and John Deere Construction and Forestry Company formed a 50:50 joint venture company to manufacture construction equipments in India.
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