Sensex opens 76 points up

Asian markets recovered some ground on Monday after heavy losses last week.

Written by Agencies | Mumbai | Published: May 21, 2012 9:20 am

The BSE benchmark Sensex today rose by over 76 points in early trade,extending gains for the second straight session on increased buying by funds and retailers amid strong corporate earnings.

The 30-share barometer,which had gained 82.27 points in Friday’s trade,surged 76.53 points,or 0.47 per cent,to 16,229.28 led by banking,realty and consumer durables stocks.

The wide-based National Stock Exchange index Nifty,moved up by 26.90 points,or 0.55 per cent,to 4,918.35.

Brokers attributed the rise to increased buying by funds and retail investors,along with covering-up of short positions by speculators triggered by strong earnings by state-run State Bank of India and Reliance Capital.

Stocks of State Bank of India rose 2.92 per cent to Rs 1,998.80,while Reliance Capital gained 6.57 per cent to Rs 310.

In the Asian region,Japan’s Nikkei was up by 0.08 per cent,while Hong Kong’s Hang Seng index shed 0.32 per cent in early trade. The US Dow Jones Industrial Average ended 0.59 per cent lower in the previous trading session.

Preopen: Sensex to Watch

GLOBAL MARKETS

* The near-month derivative contract for India’s NSE index at Singapore Exchange fell 0.2 percent,but MSCI Asia ex-Japan rose 0.44 percent. Traders said the outcome of the G-8 meeting was encouraging and markets may be due for technical rebound.

* Asian markets recovered some ground on Monday after heavy losses last week,but investors remained wary about the euro zone despite G8 world leaders calling for Greece to stay in the monetary union and for Europe to balance austerity with growth.

* US stocks fell on Friday after a sloppy debut by Facebook Inc spoiled hopes that a spectacular open for the most-anticipated stock sale in years would brighten the mood in what has been a gloomy month for equity markets.

FACTORS TO WATCH

* India central bank deputy governor Subir Gokarn speaks in Mumbai.

INDIAN STOCKS TO WATCH

EARNINGS

* Tata Steel forecast improving global demand in spite of European woes,as the world’s No.7 steelmaker reported a bigger-than-expected drop in quarterly profit after being squeezed by weak prices,lower volume and higher input costs.

ENERGY/COMMODITIES

* Reliance Industries is seeking a $1 billion five-year loan for capital expenditure,Thomson Reuters publication Basis Point reported on Friday,citing sources with knowledge of the situation.

* Suzlon Energy is seeking up to 45 more days from bondholders to repay foreign currency bonds maturing in June while it works on raising as much as $300 million in loans.

RETAIL

* India’s diversified Aditya Birla Group will buy a 27.5 percent stake in unlisted media group Living Media India Ltd,which publishes the popular India Today magazine,for an undisclosed sum.

* Speciality Restaurants’ $34 million initial public offer received bids for about two-and-a-half times the number of shares on offer on the last day of the sale,exchange data showed on Friday.

* HT Media Jan-March net profit fell 58.5 percent to 219.9 million rupees from a year ago.

OTHER FACTORS TO WATCH

* Indian debt/FX factors to watch

* G8 fails to inspire euro,risk curencies

* Oil slips,posts 3rd weekly loss

* Foreign institutional investor flows

* For closing rates of Indian ADRs

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