RTTNews - The Indian market is likely to open lower Wednesday morning following notable declines on Wall Street overnight despite upbeat economic data. Currently, Asian stocks are also trading mostly lower, with the exception of China.
That said, fund buying may help lift stocks after losses in the past 2 sessions. With car makers led by market leader Maruti Suzuki posting impressive sales in August, traders now await production and despatch data from cement makers. Ambuja Cements on Tuesday reported a 15% rise in August shipments and more companies are likely to reveal the data later in the session.
Manufacturing activity expanded globally in August for the first time since May 2008 led by the United States and Japan, a survey showed on Tuesday. The global index, produced by JP Morgan with research and supply management organizations, rose to a 26-month high of 53.1 in August.
The Australian Bureau of Statistics reported Wednesday that the economy expanded at a slightly bigger rate than expected in the 2nd quarter, with the gross domestic product rising a seasonally adjusted 0.6 percent as against a 0.2 percent forecast.
Back home, higher U.S. stock futures may prompt some traders do bargain hunting. Overseas investors remained net sellers for the second day on Tuesday, pulling out nearly Rs.636 crore, while domestic financial institutions purchased shares worth Rs.36..89 crore, provisional data released by the BSE showed. On Monday, FIIs sold shares worth Rs.86.20 crore, according to market regulator SEBI.
On Wall Street, the major U.S. averages ended down around 2% each overnight, as traders chose to exit counters on fresh concerns about the health of the U.S. financial sector despite positive economic reports on manufacturing, pending home sales and construction spending.
The Indian ADRs also ended lower across the board. Satyam Computer Services plunged 9.46% after climbing 22% in the previous session, Sterlite Industries, HDFC Bank and ICICI Bank slumped over 3% each, Reddy's Laboratories fell 2.67%, MTNL shed 2.08%, Wipro slipped 0.63% and Infosys edged down 0.23%.
Crude oil futures tumbled for a second day in a row on Tuesday, as global stocks continued to decline, increasing worries over energy demand. Traders appeared to be looking for major jobs reports and the weekly petroleum inventory data from the U.S. Energy Administration. Light sweet crude for October delivery dropped to $68.05, down $1.91 or 2.73% on the session.
As the dollar firmed and stock prices fell, the rupee ended down 0.4% at Rs.49.05/06 on Tuesday.
In corporate news, the Securities and Exchange Board of India (Sebi) has barred Austral Coke and Projects from raising further capital from the market for serious irregularities in the books of accounts of the company.
Infrastructure Leasing and Financial Services (IL&FS), the new management of Maytas Infra, said on Tuesday that it would look at recapitalizing the company through routes like a qualified institutional placement (QIP).
The price of gas to be paid by NTPC will be considered independently of the RIL-RNRL case, the government told the Supreme Court on Tuesday.
Tata Teleservices on Tuesday introduced a 'revolutionary concept' wherein it will now bill its customers on a per call basis instead of charging on a per minute basis.
Reliance Communications prepaid loans worth a little more than Rs.50 billion to save on interest costs and improve profitability, reports suggest.
On Tuesday, the Indian market ended a volatile session lower following weak cues from the European and the U.S. markets. Considerable amount of profit taking following gains in the past few sessions and sluggish performance of the export sector for the tenth straight month in July also weighed on market movement.
The BSE Sensex, which hit a high of 15,923 earlier in the session, tumbled to the day's low of 15,475 before finishing at 15,551, down 115 points or 0.74% from the previous close and the S&P CNX Nifty fell 37 points or 0.79% to 4,625. Realty, metal, power and capital goods stocks bore the brunt of the selling after recent gains.
For comments and feedback: contact email@example.com