Indian shares may open higher on Tuesday, in tandem with a firming trend across Asia as data showing slumping U.S. factory activity spurred hopes of fresh stimulus from the Federal Reserve. Despite a mixed lead from Wall Street, key benchmark indexes in China, Japan, South Korea and Hong Kong are rising between 0.3 percent and 1.5 percent.
Indian shares ended Monday's volatile session a tad lower, as investors locked in some gains following Friday's sharp rally. Global cues remained firm on continued optimism over the European pact, helping limit the downside to some extent. The benchmark 30-share BSE Sensex moved in the range of 17,487-17,363 before ending 31 points or 0.18 percent lower at 17,399, while the broader Nifty index ended almost unchanged at 5,279.
Provisional data released by BSE shows that foreign institutional investors remained net buyers in Indian equities and bought shares worth Rs.591.06 crore yesterday, while domestic financial institutions sold shares to the extent of Rs.447.49 crore.
In stock-specific action, cement manufacturers ACC and Ambuja Cements could be in focus today after they reported modest growth in production and dispatches for June. Telecom stocks may also see increased activity after agriculture minister Sharad Pawar quit as the head of EGoM looking into the grant of licenses and allocation of 2G spectrum.
U.S. stocks showed a lack of direction before ending on a mixed note overnight, with light trading activity ahead of the Independence holiday on Wednesday and data showing shrinking manufacturing activity in June for the first time in nearly three years contributing to the lackluster performance. The Dow edged down 0.1 percent, while the tech-heavy Nasdaq rose 0.6 percent and the S&P 500 added 0.3 percent.
U.S. crude futures for August delivery dropped $1.21 or 1.4 percent to close at $83.75 a barrel on the New York Mercantile Exchange, as investors weighed demand growth prospects following soft economic data globally.
by RTT Staff Writer
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