Indian shares are seen opening lower on Tuesday, mirroring weak Asian cues as optimism over Spain's 100 billion euro lifeline faded in the wake of rising Spanish bond yields.
Spanish bonds fell yesterday, pushing 10-year yields up by the most in almost a month on concerns the bailout for its banks won't be enough to prevent the European contagion from spreading. Focus is also turning from Spain to Greece ahead of the upcoming Greek elections.
Asian markets are trading mostly lower, with the Australian market bucking the downward trend after the Queen's Birthday holiday yesterday.
Closer home, investors await industrial output data for April due out later in the day for directional cues. Investors will also be watching closely the movement of rupee as well as crude oil for clues about whether the RBI will cut interest rates next Monday. Crude oil futures dropped $1.40 or 1.7 percent to close at $82.70 a barrel on the New York Mercantile Exchange Monday, weighed down by demand concerns.
Meanwhile, finance minister Pranab Mukherjee has rejected Standard and Poor's claims that India could be the first BRIC economy to lose investment-grade rating, saying that there will be a turnaround in growth prospects in the coming months.
Benchmark indexes Sensex and the broader Nifty eased about 0.3 percent each on Monday, as caution set in ahead of industrial output data due out on Tuesday and May inflation numbers scheduled on 14th. A rebound in crude prices and the rupee's weakness against the dollar following Standard & Poor's warning that India could become the first of the so-called BRIC countries to lose its investment-grade rating also led investors to book some profits late in the session.
Provisional data released by BSE shows that foreign institutional investors bought shares worth Rs.130.38 crore on a net basis yesterday, while domestic financial institutions offloaded shares to the extent of Rs.214.66 crore.
Pipavav Defence and & Offshore Engineering Company said that it has teamed up with French Naval defence company DCNS to build modern warships for the Indian Navy and Coast Guard.
In a bid to expand overseas operations, Jet Airways is in talks with European aircraft manufacturer, Airbus, for inducting nine A330-300 planes into its fleet, possibly in a year, the Economic Times reported.
Vedanta Aluminum , a subsidiary of London-listed Vedanta Resources, has acquired a 24.5 percent stake in Raykal Aluminum, a unit of Larsen & Toubro, for Rs 200.70 crore.
U.S. And European Markets
U.S. stocks finished sharply lower overnight after gains at the outset of trading in response to the initial euphoria over Spain's 100 billion euros bailout to recapitalize its beleaguered banks. The upward momentum quickly faded as investors expressed doubts as to whether the deal represents a long-term fix to the euro-zone debt crisis. The Dow edged down 1.1 percent, the tech-heavy Nasdaq slid 1.7 percent and the S&P 500 shed 1.3 percent.
European stocks turned in a mixed performance, with the German DAX rising 0.2 percent, while France's CAC 40 slipped 0.3 percent and the U.K.'s FTSE 100 edged down marginally.
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org