Asian bourses push Sensex up 59 pts

The wide-based National Stock Exchange Nifty Index moved up by 8.55 points,or 0.16 per cent,to 5,291.10 points.

Brokers said pick-up in buying by funds was triggered by a firming trend on other Asian bourses following overnight gains in Europe and on Wall Street on hopes that the European Central Bank may take action soon to ease the continent8217;s debt crisis.

In the Asian region,Hong Kong8217;s Hang Seng Index rose by 0.18 per cent and Japan8217;s Nikkei Index by 0.60 per cent in morning trade. The Dow Jones Industrial Average ended 0.16 per cent higher in yesterday8217;s trade.

Stocks More on DLF Ltd

Company INFO More on Cognizant

STOCKS/PRE-OPEN: Indian stocks to watch-Aug 7

GLOBAL MARKETS

The Nifty futures in Singapore Exchange rose 0.15 percent,while the MSCI Asia-Pacific index excluding Japan rose 0.3 percent.

U.S. stocks closed at three-month highs for the second day in a row on Monday,extending last week8217;s rally on the hope for more assistance for the troubled euro zone.

Asian shares steadied on Tuesday as investors maintained hope that Europe will take further action to tackle its debt crisis and the United States and China will adopt stimulus measures to boost growth.

FACTORS TO WATCH

Elected members of the Indian parliament and state legislative assemblies will vote to elect the country8217;s next Vice President. Current incumbent Hamid Ansari is the front runner as the candidate of the ruling United Progressive Alliance. Results will be declared the same evening.

Directors of Coal India,the world8217;s largest coal miner,meet in New Delhi to further discuss terms for fuel supply pacts with power producers.

Major earnings on Tuesday: Balrampur Chini,Tata Chemicals,Punj Lloyd,Sobha Developers

INDIAN STOCKS TO WATCH

FINANCIAL/REGULATORY

Buying life insurance policies may get more attractive with the government looking at further tax incentives as part of its plan to wean investors away from gold to financial instruments,including mutual funds.

The insurance regulator is planning to raise the investment ceiling for all life insurers,which is currently at a 10 percent stake limit,according to Sudhin Roy Chowdhury,a member of the Insurance Regulatory and Development Authority.

EARNINGS

Cognizant Technology Solutions Corp reported a better-than-expected quarterly profit on increased demand for its outsourcing services,and the information technology services provider raised its full-year adjusted profit forecast.

DLF,India8217;s biggest real estate developer,reported little success in paring its debts and posted an 18 percent drop in first-quarter net profit on Monday,hit by high interest and slowing home sales in Asia8217;s third-largest economy.

BEML Limited said it swung to a April-June net loss of 394.4 million rupees from a profit of 158.7 million rupees a year ago.

Escorts said its April-June net profit more than doubled to 269 million rupees from 132 million rupees a year earlier.

Mirc Electronics said it swung to a April-June net loss of 170.3 million rupees from a profit of 57.3 million rupees a year ago.

EIH said its April-June net profit fell 38.8 percent to 94.5 million rupees from a year ago.

ENERGY/COMMODITIES

The government plans to give two months8217; extension to the panel set up to overhaul hydrocarbons contracts with private energy firms,further delaying the next round of auctioning of oil and gas exploration blocks,government officials with direct knowledge of the matter said.

Oil and Natural Gas Corp may be forced to restate its production volumes if the government continues with the current method of calculating the subsidy mechanism,a senior company executive said.

Power Minister M Veerappa Moily has ordered third-party evaluation within a month of grid protection systems. Regional power committees would monitor the audit,with the first one to be done by centrally-run Power Grid,the minister said.

The coal ministry has halved the production targets of captive coal mines owned by the private as well as public sector companies.

RETAIL

IKEA has agreed to comply with India8217;s local sourcing conditions by the seventh year of its operations and is willing to sell only eponymously branded food items at its stores,a person with direct knowledge of the discussions between the Swedish retailer and the government said.

Thomas Cook India is expanding its foreign exchange business to meet an increase in demand for inward by adding 26 outlets in smaller cities in the quarter ended June,said Mahesh Iyer,head of the company8217;s forex division.

TELECOMS

The telecoms department is set to inform global investors,including Telenor,Sistema,Capital Global ,Kaif Investment,and Axiata Group that India had not discriminated against their investment here,according to a draft communication that will be sent to them.

These investors had filed notices to the Indian government for alleged breach of bilateral investment protection agreements BIPAs after the Supreme Court cancelled telecom licence in February.

India8217;s Delhi High Court on Monday ruled that Telenor8217;s local joint venture can seek expressions of interest from potential bidders for a planned auction of its assets,a spokesman for the JV said,while the country8217;s Company Law Board is hearing a case challenging the auction.

The joint venture with Unitech,which operates under the Uninor brand,had invited potential bidders to express interest by Aug. 6 and said its majority owner,Norway8217;s Telenor,was willing to bid in the auction.

PHARMA

Aurobindo Pharma and Glenmark have received approval from U.S. health regulators to manufacture and market generic montelukast sodium tablets used for treating asthma and allergies in the U.S. market.

OTHER FACTORS TO WATCH

Euro still supported; Aussie eyes RBA

Oil hits 11-week high on strong equities,weak dollar

Foreign institutional investor flows

Mutual Funds Check for top funds