Tuesday, the Indian market is likely to open flat amid mixed global cues. While stocks on Wall Street finished lower overnight, the other major Asian markets are trading mostly higher this morning.
Profit taking and concerns about capital outflows following net selling by foreign funds on Monday may weigh on the market, but domestic financial institutions are likely to indulge in stock-specific buying. On a net basis, foreign funds sold shares worth Rs.102 crore on Tuesday, according to provisional data released by stock exchanges.
Meanwhile, early reports of fourth-quarter advance tax payments by companies showed a mixed trend. As of March 15, the last date for the payout, banking, FMCG and pharma sectors reported a higher tax outgo on the back of fiscal/monetary stimulus and rural demand, while construction and engineering companies were impacted by the spillover of the global financial turmoil into the real economy.
Overnight, stocks on Wall Street finished lower after American Express said its credit card default rates rose to 8.7% in February, offsetting the earlier optimism that the U.S. banks are seeing a revival. With traders reacting positively to comments from Federal Reserve Chairman Ben Bernanke, stocks were mostly higher through much of the session but pulled back sharply going into the close.
While the tech-heavy Nasdaq posted a particularly steep loss, the Dow and the S&P 500 ended the day only modestly lower. The Nasdaq Composite fell 27.48 points or 1.9 percent to 1,404.02, while the Dow Jones Industrial Average closed down 7.01 points or 0.1 percent at 7,216.97 and the S&P 500 index closed down 2.66 points or 0.4 percent at 753.89.
However, the Indian ADRs ended mixed. Satyam tumbled 5.03%, HDFC Bank declined 1.6% and Infosys moved down 0.91%, but Reddy's Laboratories rose 2%, Wipro gained 0.96%, MTNL jumped 7.56%, ICICI Bank climbed 7.12% and Sterlite added 2.4%.
Crude oil price, which declined sharply following OPEC's decision not to change the output levels, rebounded on Monday on expectations that economic recovery might happen earlier than expected. After settling at $47.35 a barrel, up 2.38% in New York trading on Monday, the commodity is trading at $47.02 a barrel in Asian trading.
The rupee rose the highest in more than 2 weeks to settle at Rs.51.40/41 against the dollar on Monday, boosted by hopes of revival in capital inflows following gains in the stock market and weakness of the US dollar overseas.
On Monday, the Indian market recovered from its day's lows to end sharply higher, in line with a positive trend in the European markets. The BSE Sensex finished at 8,944, up 187 points or 2.13% over the previous close, while the S&P CNX Nifty rose 58 points or 2.13% to 2,777. Stocks across the sectors received good support. Realty, oil/gas and banking stocks were the top gainers. Second-line stocks also showed significant gains. The broad-based BSE 500 index, the small-cap and the mid-cap indexes advanced around 2.20% each.
MTNL is likely to see some buying following reports that it is examining plans to separate its mobile towers and real estate assets into a new entity to raise funds for diversification.
Pantaloon Retail could be in focus on reports that the company is evaluating the option of creating a new entity, Future Value Retail, for its value retailing businesses.
State Bank of India may rise on reports that the bank paid Rs.1, 810 crore advance tax in the fourth quarter, 27% higher than the corresponding period last year.
GMR Energy could be in focus on reports that the group is planning to take a stake in Power Exchange India, a venture promoted by the National Stock Exchange and the NCDEX for sale and purchase of electricity.
JSW Steel may be in focus on reports that it has cut down its exposure to the international market and has started focusing on domestic rural markets.
LIC Housing Finance may see some activity after it has announced a further 75 basis point cut in its existing home loan rates.
NMDC could move following reports that it is set to close a deal for a coking coalmine in Australia to provide linkage for its steel plant at Nagarnar in Chhattisgarh.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.