Markets likely to open flat tracking mixed global cues

Markets are likely to make a flat-to-negative opening on the back of mixed global and rise in crude oil prices. The early indicator, SGX Nifty has dipped by 8 points at 7,651.

On Monday, markets posted their biggest single-day drop since February 23, as the dollar continued to gain against most global currencies, triggering speculation that the US Federal Reserve might raise rates at its next meeting.

Among overseas markets, Asian shares struggled to find their footing on Tuesday after downbeat US economic data contributed to an uninspiring session on Wall Street and pressured the dollar.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.05% after wavering for most of the early session.

Australian shares slumped 0.3%, in their first day of trade following the long Easter weekend that also closed many markets in Europe.

Japan's Nikkei skidded 0.8% in early trading, not helped by mixed economic data released before the market opened.

Besides, oil prices fell in early Asian trade on Tuesday as concerns mount that a rally since January is fizzling out, while analysts forecast another rise to record levels for US crude stockpiles.

Back home, the government is likely to infuse additional capital of about Rs 5,050 crore in some public sector banks this week.

Further, participants are patiently waiting for the Reserve Bank of India (RBI) monetary policy review due on April 5 amid hopes of a 25 basis points cut in interest rates.

 
Meanwhile, volatility is likely to be witnessed on account of March series futures and options contracts expiry tomorrow.

CORPORATE NEWS

ONGC has approved an investment of Rs 340 billion over the next few years in its east coast oil and gas asset, in a bid to boost production and benefit from a change in government policy.

JSW Energy is looking at various distressed coal-fired power plants in anticipation of demand improving, an executive said, amid talk the company is buying a big power plant from Jindal Steel & Power.

IDBI Bank has allotted 158 million equity shares, equivalent to 7.16 per cent stake, on preferential basis to Life Insurance Corporation of India (LIC), which now holds over 14 per cent stake in the state-run lender.

Dr Reddy’s Laboratories has entered into an in-licensing agreement with US-based bio-pharmaceutical company XenoPort to develop and market the latter’s clinical-stage oral new chemical entity (NCE), XP23829, a potential treatment for moderate-to-severe chronic plaque psoriasis and for relapsing forms of multiple sclerosis (MS), in the US market.

Ashok Leyland on Monday sold shares worth Rs 299 crore in IndusInd Bank through an open market transaction.

HDFC Bank, the country's second largest private sector lender, is set to raise up to Rs 5,000 crore by way of infrastructure bonds.

Odisha is set to lose Rs 2,173.91 crore in 2016-17 due to deferment of value added tax (VAT) to Indian Oil Corporation's 15 million tonne crude oil refinery at Paradeep.

Infrastructure firm HCC has bagged two orders worth Rs 623 crore in the hydro power and tunneling sectors.

With Reuters input