Indian shares may open on a flat note on Wednesday, as concerns persist about contagion risks from eurozone countries like Greece and Spain despite the European Central Bank calling for a deposit guarantee scheme to make the euro area more resilient.
Japan's Nikkei index is gaining 0.3 percent after data showed the nation's machinery orders increased more than economists expected in April. Key benchmark indexes in Hong Kong, Indonesia and Malaysia are also posting modest gains, while the markets in Australia, Singapore and New Zealand are down between half a percent and one percent.
Closer home, the finance ministry has slammed rating agency S&P's report on the likely downgrade of India, saying the process it follows is not transparent and the Indian economy is in much better shape than perceived by the agency, according to reports.
Indian shares rallied on Tuesday, with benchmark indexes Sensex and the Nifty climbing around 1.2 percent each, as weak industrial production data spurred hopes that the RBI will cut interest rates aggressively at its upcoming policy meeting next Monday.
However, provisional data released by BSE showed that both foreign institutional investors and domestic financial institutions turned net sellers in Indian equities yesterday, offloading shares worth Rs.56.60 crore and Rs.54.21 crore, respectively.
In corporate news, Ashok Leyland said it plans to raise funds up to Rs 750 crore in one or more tranches, including by way of a qualified institutions placement to eligible qualified institutional buyers to finance the capital requirements of the company.
Mahindra Satyam new management will soon finalize its legal course of action on the Rs 1230-crore claims by IL&FS Engineering and Construction Company, the Business Standard reported.
Reliance Industries said it expects that production will continue to decline and force the company to seek damages, if the government doesn't approve several of its investment plans for its KG-D6 gas fields, according to the Economic Times.
Eros International announced the launch of its online music channel; Eros Now Music on YouTube.
On Wall Street, stocks ended notably higher overnight after Spanish bond yields came off euro-era record highs. Bargain hunting following the previous session's sell-off also contributed to the buying interest. The Dow rose 1.3 percent, while the tech-heavy Nasdaq and the S&P 500 added about 1.2 percent each.
by RTT Staff Writer
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