The Indian stock market is likely to open higher on Tuesday, tracking the positive cues from its Asian peers and on the Indian government's decision to deferred applying the General Anti-Avoidance Rules or GAAR to next year.
Asian markets are mostly trading higher on hopes that Spain will use public funds to bolster its struggling banks.
Indian shares rose modestly on Monday, reversing early losses amid a weak trend in global markets, after finance minister Pranab Mukherjee deferred applying the GAAR by one year until fiscal 2013/14.
The benchmark 30-share Sensex recovered more than 300 points from the day's lows to end up 82 points or 0.48 percent at 16,913, with 19 of its stocks advancing. The broader Nifty index rose by 27 points or 0.54 percent to 5,114.
Foreign institutional investors or FII inflows turned negative in April following three straight months of strong inflows as overseas investors were put off by the Finance Minister's proposal to introduce GAAR in Budget 2012-13.
Meanwhile, the Indian rupee is also expected to rise following the government's decision to defer the implementation of GAAR provisions by a year.
In Tuesday's trading, information technology shares are likely to be in focus after Cognizant Technology Solutions Corp. scaled back its dollar revenue growth estimate for 2012 citing slower than anticipated acceleration in demand.
Asian Paints, Kotak Mahindra Bank, Hindalco and Infrastructure Development Finance Co. or IDFC and among the companies that will announce their financial results for the fourth quarter today.
On Wall Street, stocks struggled to find direction on Monday amid uncertainty about the situation in Europe following recent election results. The major averages ended the session mixed, with the Dow posting a modest loss.
While the Dow ended down 29.7 points or 0.2 percent at 13,008.5, the Nasdaq edged up 1.4 points or 0.1 percent to 2,957.8 and the S&P 500 crept up by 0.5 points or less than a tenth of a percent to 1,369.6.
Major European markets ended higher on Monday. The French CAC 40 index gained 1.7 percent, while the German DAX index edged up by 0.1 percent. The U.K. markets were closed for a holiday.
U.S. crude oil futures settled lower for a fourth straight day on Monday, as the dollar strengthened and commodities took a hit due to eurozone sovereign debt problems. Crude for June delivery ended down $0.55 or 0.6 percent at $97.94 a barrel on the New York Mercantile Exchange.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.