RTTNews - Wednesday, the Indian market is set for a gap-down opening on the back of extremely weak global cues. With a slew of economic reports to come out during the course of this week from the U.S. and the outcome of the crucial U.S. Federal Open Market Committee meeting due later in the day, investors may chose to remain on the sidelines.
Net sales by FIIs totaled Rs.1,800 crore in the past four trading sessions till Monday, data from market regulator SEBI showed. According to provisional data released by the BSE, FIIs continued their selling on Tuesday by selling shares worth Rs.177. 47 crore on a net basis.
The prime minister's economic advisory panel has been reconstituted with formal RBI governor Dr C. Rangarajan as its Chairman, a government statement said on Tuesday.
On Wall Street, the major U.S. indexes ended down over 1% each on Tuesday with traders going in for profit taking ahead of key economic data due out in the second half of the week. On the economic front, traders largely shrugged off the Labor Department's report showing a much bigger than expected increase in productivity in the second quarter.
The Indian ADRs closed mostly lower. Satyam Computers tumbled 3.83%, HDFC Bank fell 2.74%, Wipro shed 2.68%, ICICI Bank eased 1.41%, MTNL gave off 1.26%, Infosys lost 1.16% and Sterlite Industries slipped 0.84%, but Reddy's Laboratories ended up 1.24%.
Crude oil prices finished below $70 per barrel on Tuesday as traders braced for what is expected to be a bearish inventory report. Lower stocks also raised concerns for energy demand. Light sweet crude for September delivery settled at $69.45, down $1.15 on the session. In Asian trading on Wednesday, the commodity is trading mostly unchanged on the back of a surprise crude stock drawdown in weekly inventory. The American Petroleum Institute reported that U.S. crude stockpiles declined 1.42 million barrels to 348.5 million last week.
The rupee closed at Rs. 47.96 against the dollar on Tuesday, off from the day's low of 48.04, but weaker than Monday's close of 47.82/83, weighed down by a steady dollar following last week's better-than-expected U.S. jobs report.
On Tuesday, buying at lower levels on the back of favorable Asian cues helped the Indian market snap a 3-day losing streak. The BSE Sensex moved in a range of 15,219-14,864 before finishing at 15,075, up 65 points or 0.43% and the S&P CNX Nifty rose 34 points or 0.76% to 4,471. On the BSE, the small-cap index advanced 0.55% and the mid-cap index by 1.10%, outperforming large-caps. While auto, realty and metal stocks led the market higher after recent losses, public sector stocks closed on a subdued note.
Stocks to Watch
State-run Bharat Heavy Electricals (BHEL) is likely to sign a joint venture agreement with Maharashtra State Power Generation Company (Mahagenco) on Wednesday to set up a 1,500-MW super-critical thermal power plant at Latur in Maharashtra, reports suggest.
Era Infra Engineering may raise around Rs 500-600 crore through a qualified institutional share placement, reports said.
ONGC is reportedly in talks with three Russian companies to explore a joint bid for Repsol YPF's stake in its Argentine unit YPF SA.
To protect its commercial interests, state-run NTPC may join the legal war between Reliance Industries and RNRL over the supply of KG basin gas, reports suggest.
GSM telecom operators such as Bharti Airtel, Vodafone Essar and BSNL have together added 9.5 million subscribers in July compared to 8.9 million users in the previous month, according to the data released by industry body Cellular Operators' Association of India.
For comments and feedback: contact firstname.lastname@example.org