The BSE benchmark Sensex rose by nearly 89 points in early trade today on fresh buying by funds and retailers amid a firming trend in Asian markets.
The 30-share barometer,which had lost 31 points in yesterday’s trading,recovered by 88.82 points,or 0.51 per cent,to 17,487.80 during the first five minutes of trading.
All sectoral indices,led by consumer durable,realty and banking,rose by up to 0.91 per cent.
Similarly,the wide-based National Stock Exchange index Nifty moved up by 21.10 points,or 0.40 per cent,to 5,299.70.
In the Asian region,Hong Kong’s Hang Seng index rose by 1.30 per cent and Japan’s Nikkei was up by 0.76 per cent in early trade.
Preopen: Sensex,Nifty to watch
* The Nifty futures in Singapore Exchange rose 0.6 percent,while the MSCI Asia-Pacific index excluding Japan rose 0.8 percent.
* US stocks edged higher on Monday,shaking off a surprise contraction in US manufacturing,which some investors took as a signal the Federal Reserve will take more forceful actions to boost the economy.
* Asian shares inched up on Tuesday as manufacturing data around the world highlighted the drag on growth from the protracted euro zone debt crisis,raising expectations for the Federal Reserve to take further steps to underpin the fragile economy.
FACTORS TO WATCH
* A telecoms tribunal,which was hearing appeals by mobile carriers against a govt order to ban 3G roaming pacts between them,is scheduled to issue its verdict. (0630 GMT)
* India’s federal cabinet may discuss a telecoms ministry proposal to charge existing 2G radio airwave holding by carriers at a price to be determined by an upcoming auction. (0630 GMT)
* Indian Trade Minister Anand Sharma will attend a pharmaceutical conference. (0900 GMT)
* RBI Governor to meet industry body officials. (1030 GMT)
INDIAN STOCKS TO WATCH
* The department of telecom (DoT) has been forced to modify a proposal that would have made it compulsory for existing operators to pay the auction-determined price for all airwaves they currently hold,following opposition from the finance ministry,Planning Commission,and department of industrial policy and promotion (DIPP).
* India’s federal cabinet may discuss a telecoms ministry proposal to charge existing 2G radio airwave holding by carriers at a price to be determined by an upcoming auction.
The sector regulator had earlier proposed to charge a one-time fee for airwaves holding beyond 6.2 MHz.
* Worried at the prospects of multinationals slowing down production of essential drugs after they acquire Indian pharma companies,the government has decided to build stringent safeguards to ensure availability of life-saving drugs.
* India extended the ban on milk and milk products from China for another year till June 2013,according to the foreign trade office.
* Fearing attempts to drag him into controversies,Agriculture Minister Sharad Pawar recused himself from heading the Empowered Group of Ministers (EGoM) on telecom,three days after he replaced Pranab Mukherjee in the job.
* Passenger fares and freight charges will not go up immediately as the Finance Ministry issued a notification exempting the railways from 12 per cent service tax for three months till September 30.
* State-run banks have urged the Reserve Bank of India (RBI) to consider perpetual non-cumulative preference shares (PNCPS) as part of their core Tier-I capital under Basel-III norms.
* India’s Grasim Industries says to curtail production at staple fibre plant at Nagda.
* Losses on sale of diesel and cooking fuels by state-run oil firms have almost halved to 3.72 billion rupees a day from 6.7 billion rupees a day at the beginning of the current fiscal year,following a sharp dip in international oil rates and strengthening of rupee.
* After talks with Changi Airport failed to sell 26 per cent in its airport business,GVK Power and Infrastructure Ltd is in discussions with a few private equity players in an effort to dilute stake in GVK Airport Holdings. It is learnt that GVK plans to raise about $600-650 million (33-35 billion rupees) through the sale.
* GVK’s $10-billion Alpha coal project is expected to get environmental clearance from Australian government by the end of this month or early August,the chairperson of Hancock Prospecting Group Pty Ltd,Georgina Hope Rinehart said. * After NTPC and Coal India,NMDC may also exit from International Coal Ventures Ltd (ICVL) and has begun scouting for overseas coking coal assets acquisition on its own,putting a question mark on the venture’s survival itself.
* Coal India may now be allowed a lower fuel supply commitment of 65 percent to power companies as against 80 percent prescribed earlier,but will pay a much higher penalty of up to 40 percent of the value of the coal in short supplying case of failure to meet this reduced supply obligation. Earlier,the penalty agreed by the coal PSU was a trifling 0.01 percent.
* Italy’s Eni SpA has evinced interest in selling its holding in Hindustan Oil Exploration Co. Ltd (HOEC),and state-owned Oil and Natural Gas Corp. Ltd has received a banker-led proposal to buy the stake.
* India’s Ambuja Cements Ltd,owned by Switzerland’s Holcim,the world’s second-largest cement producer,said cement shipments in June rose 7.2 percent to 1.79 million tonnes,from a year earlier.
* India’s Hero MotoCorp June sales up 4.3 pct y/y to 534,091 vehicles from 512,244 vehicles a year ago.
* India’s automobile industry on Monday announced a voluntary code on vehicle recalls and recommended that the government take action if members fail to declare one when it’s required. However,the Society of Indian Automobile Manufacturers (Siam) lobby group said manufacturers violating the code won’t be penalized.
* The Modi group has tied up with US- based company Guardian for setting up a glass factory at Malanpur Ghirongi industrial area in the neighbouring Bhind district.
* Mahanagar Telephone Nigam Ltd says received net cheque amounting to 1.17 billion rupees from Income Tax department after adjusting 350.8 million rupees against demand for assessment year 2006-07.
*Bharti Airtel has partnered with Hewlett-Packard to offer cloud-based e-mail,accounting packages,business software and storage services to small and mid-sized businesses,a move to increase revenue from data services when voice-based income has been declining.
OTHER FACTORS TO WATCH
* Indian debt/FX factors to watch
* Euro & USD fall prey to weak data,Aussie eyes RBA
* Oil slips on more signs of slowing economy
* Foreign institutional investor flows
* For closing rates of Indian ADRs