Bullish sentiment may prevail for a third day in a row on Wednesday, with market heavyweight Reliance Industries likely to be in focus as the energy giant received conditional approval for over $1 billion of spending on its KG-D6 gas fields to raise output. A rise in rupee to a three-month high yesterday, boosted by renewed FII inflows and positive global cues may also keep investors in a good mood.
Meanwhile, with UPA candidate Hamid Ansari securing his re-election as India's Vice President, investors are hoping the government will announce a few reform measures this week. Finance Minister P Chidambaram, who is under attack for alleged involvement of his family members in the Aircel-Maxis deal, reached out to the top brass of main Opposition BJP yesterday, seeking a smooth sailing for himself and some of the Bills he intends to get passed during the monsoon session of parliament beginning today.
Indian shares rallied for a second straight day on Tuesday, as positive global cues and finance minister Chidambaram's promise for fiscal reforms led to improvement in investor risk appetite. The benchmark 30-share Sensex rose to a four-month high before paring gains to end up 189 points or 1.08 percent at 17,602, while the broader Nifty index rose by 54 points or 1.03 percent to 5,337.
According to provisional data released by BSE, foreign institutional investors stepped up purchases and bought shares worth Rs.815.95 crore yesterday, while domestic financial institutions bought shares worth Rs.55.24 crore.
On the earnings front, Aban Offshore, GVK Power, Indian Hotels, Mahindra & Mahindra, Oil India, Tata Power and United Breweries Holdings are among the companies that will unveil their quarterly results today.
Asian Markets
Asian markets are trading higher across the board, with key benchmark indexes in Japan and South Korea rising about 1.5 percent each, boosted by better-than-expected corporate earnings in the U.S. and expectations that central banks would roll out more emergency stimulus measures.
U.S. And European Markets
U.S. stocks rose for a third straight session to fresh three-month closing highs overnight, as data showing a fourth consecutive quarter of contraction in Italy's economy and declining German factory orders stoked expectations that the ECB will unveil additional measures to address the ongoing debt crisis.
Buying interest was also generated by comments by Boston Federal Reserve President Eric Rosengren, who called for an "open-ended" quantitative easing program to boost economic growth. The Dow rose 0.4 percent, the tech-heavy Nasdaq gained 0.9 percent and the S&P 500 advanced half a percent.
The major European markets also moved higher, with the U.K.'s FTSE 100, France's CAC 40 and the German DAX rising between 0.6 percent and 1.5 percent, amid increased hopes that the European Central Bank would soon restart its sovereign bond-buying program.
by RTT Staff Writer
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