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Markets are likely to open positive and extend yesterday’s gains tracking firm global cues. The early indicator, SGX Nifty has gained 15 points at 8,579.
Indices ended nearly 2% higher on Monday snapping eight-day losing streak amid a broad-based rally led by index heavyweight, capital goods and bank shares while firm global cues and strength in Asian markets also aided the upmove.
"Markets rallied on account of all round buying witnessed in scrips across the sectors. Financials, FMCG and Infrastructure shares were the major contributors of today's rally," said Amar Ambani, head of research at IIFL in a note.
"Truncated week promises to be full of action as traders and investors will shift their focus on the February fiscal deficit and the fourth quarter current account deficit data which is scheduled to be released on Tuesday. Uncertainty over the geo-political tensions and global cues would continue to drive markets going ahead,” he adds.
Technical chartists sugegst that 8,500 – 8,550 is likely to act as a strong resistance for the Nifty. "Going forward, we may either witness some consolidation or a slide back towards 8400 – 8350 levels. We advise short term traders not to get too much excited in this technical bounce and try to stay light on positions," said analysts at Angel Broking in a morning note.
GLOBAL MARKETS
US stocks climbed more than 1% on Monday, rebounding from a sharp decline last week, helped by deal activity in healthcare and a bounce in energy shares.
Also boosting investors' risk appetite, Chinese stocks surged to seven-year highs, helped by hopes for more infrastructure spending and monetary policy easing.
The Dow registered its biggest daily percentage gain since Feb. 3 and all 10 primary S&P 500 sectors rose on the day, led by energy, which jumped 2.1% despite a slight decline in Brent and US oil prices.
Asian stocks rose across the board on Tuesday after a rally on Wall Street and steps by China to shore up its economy boosted risk appetite, while Greek debt worries again haunted the sagging euro.
Tracking overnight gains in US stocks, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7%.
Japan's Nikkei added 0.3% and Australian shares rose 1.2%. Bourses in South Korea, Malaysia and Indonesia posted sizeable gains as well.
The Shanghai Composite Index followed up Monday's rally, rising to a fresh seven-year high on hopes for more infrastructure spending and monetary easing.
STOCKS TO WATCH
The finance committee of the Century Textiles board of directors has allotted 8.47 million shares to the promoter companies today thus increasing the stake of Kumar Mangalam Birla family stake by around 8% in the company.
Leading private sector lenders ICICI Bank and HDFC Bank have cut rates by up to 0.25% on high value fixed deposit on select maturities, a move that could be a precursor to lower lending rates.
The Indian Oil Corporation Limited (IOCL), a Maharatna national oil company would seal a deal with the Chhattisgarh government for developing natural gas infrastructure, city gas distribution and supply of gas.
Multi Commodity Exchange (MCX) has sold around 90 lakh warrants of Metropolitan Stock Exchange (MSXI), earlier known as MCX-SX, worth Rs 2.2 crore to IL&FS Financial Services.
ICICI Bank, the largest private sector lender in the country, on Monday said it had received capital repatriation from its subsidiaries in Canada and the United Kingdom this month.
Global private equity major KKR, Indium V and LeapFrog Investments will invest Rs 500 crore in Magma Fincorp Limited, the non-banking finance company (NBFC).
Banking shares will be in focus. The Reserve Bank of India (RBI) has allowed banks to use 50% of their counter-cyclical provision buffer for specific bad loan provisioning, compared to the current 33%. This will provide relief to banks, struggling with a rise in non-performing assets (NPAs).
GVK Power & Infrastructure is likely to file a draft prospectus for an up to Rs 1,500-crore initial public offer (IPO) of its airport unit soon, four sources involved in the process told Reuters.
Commercial vehicle major Ashok Leyland has divested its entire stake in company's Czech Republic subsidiary Avia Ashok Leyland. The company made a cash realisation of $10.96 million.
Murugappa Group firm EID Parry (India) Ltd said that it has divested its entire shareholding of 1,02,222 equity shares of Rs 100 each in Alagawadi Bireshwar Sugars Pvt Ltd for Rs 1.70 crore.
