Sensex opens 83 pts up

Sensex had gained 199.02 pts in previous session,added another 83.20 pts to 16,500.04.

The BSE benchmark Sensex extended gains for the second straight day by adding over 83 points in early trade today on increased buying by funds and retail investors amid covering-up of short positions by speculators.

The 30-share index,which had gained 199.02 points in the previous session,added another 83.20 points,or 0.51 per cent,to 16,500.04 with all the sectoral indices led by auto were trading in positive zone with gains up to 0.92 per cent.

The wide-based National Stock Exchange index Nifty,regained crucial 5,000 points level by rising 19.70 points,or 0.40 per cent,to 5,005.35.

Brokers said besides value buying by funds and retail investors at selective stocks,having strong fundamentals,covering-up of short positions ahead of Thursday8217;s monthly expiry in the derivatives segment also influenced the trading sentiments.

They said the mood was also helped by global rating agency Moody8217;s comment that the sliding rupee will not impact India8217;s sovereign ratings.

In the Asian region,the Japan8217;s Nikkei was down 0.06 per cent,while Hong Kong8217;s Hang Seng marginally up by 0.18 per cent in the morning trade today. The US markets remained closed yesterday for Memorial Day holiday.

Pre Open: Senmsex to watch

GLOBAL MARKETS

The near-month derivative contract for India8217;s NSE index at Singapore Exchange rose 0.1 percent,while MSCI Asia ex-Japan edged up 0.5 percent.

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Asian shares eased on Tuesday,with a relief rally from last week8217;s heavy selling faltering quickly as a surge in Spanish borrowing costs added to simmering worries about Europe8217;s debt restructuring challenges.

US markets were shut overnight for Memorial Day holiday.

FACTORS TO WATCH

Tata Motors releases its fiscal year results,with all eyes on the performance from Jaguar Land Rover 8212; the luxury arm that brought in over 90 percent of the car maker8217;s profit during fiscal Q3.

Analysts are expecting a 21.7 percent increase in profits on a 32.8 percent hike in revenues 1130 GMT

State-run Oil and Natural Gas Corp,the country8217;s biggest oil producer,is likely to post a higher March quarter net profit,but a higher share of subsidy burden due to government-set fuel prices is expected to take the shine off gains from higher crude oil prices

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Sun Pharmaceutical Industries,top drug company by market capitalisation,will announce its Q4 numbers

Steel Authority of India, India8217;s largest domestic producer expected to report an improvement in quarterly profit on the back of better selling prices and easing raw material costs.

Hindustan Petroleum Corporation will announce its fourth quarter results.

State-run Coal India,which on Monday posted its first decline in quarterly profits since listing in 2010,holds an investor/analyst call. 1130 GMT

RBI deputy governor Anand Sinha to deliver an address on the impact of Basel III on bank operations,profitability and capital management at the BFSI Investor Conference organised by ICICI Securities. 1030 GMT

INDIAN STOCKS TO WATCH

EARNINGS

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State miner Coal India,which earlier this year reversed a price increase under pressure from power producers,on Monday reported its first decline in quarterly profit since listing in 2010,weighed down by a steep increase in wage bills.

NMDC8217;s Jan-March net profit fell 21.8 percent to 16.42 billion rupees from a year ago.

Trent Jan-March net profit rose more than two-fold to 195.3 million rupees from a year earlier.

Balrampur Chini Mills Jan-March net profit rose 15 percent to 1.3 billion rupees from a year earlier.

ENERGY/COMMODITIES

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GVK Power amp; Infrastructure has won environmental approval from the state of Queensland for its A6.4 billion 6.30 billion Alpha coal project,clearing a key hurdle towards winning a lease for the Australian mine.

FINANCIAL

The Reserve Bank of India has removed restrictions imposed on banks which earlier prevented lenders from levying penalty on customers for foreclosure of some term deposits.

India is looking at ways to attract new capital flows from foreign investors as a way to bolster its ailing currency,a senior finance ministry official said on Monday.

OTHER FACTORS TO WATCH

Indian debt/FX factors to watch

Euro wobbles near 2-year low

Brent crude oil closes above 107 on Greece,Iran

Foreign institutional investor flows

For closing rates of Indian ADRs