Sensex opens 92 points up

All sectoral indices,led by metal,realty and auto,were trading in positive zone with gains of up to 0.84 per cent.

On the similar lines,the wide-based National Stock Exchange Nifty index moved up by 28.45 points,or 0.54 per cent,to 5,316.40.

Brokers said sentiment remained upbeat on increased capital inflows triggered by measures announced by the government last week to revive the economy and strengthen the rupee.

Besides,a firming trend in global markets on growing hopes that global central banks will take further steps to power the economy also influenced the sentiment here,they added.

In Asia,Hong Kong8217;s Hang Seng Index was up 0.50 per cent,while Japan8217;s Nikkei Index rose by 0.70 per cent in morning trade.

In the US,the Dow Jones Industrial Average closed 0.56 per cent higher yesterday.

Pre open: Sensex,Nifty to watch

GLOBAL MARKETS

The Nifty futures in Singapore Exchange rose 0.3 percent,while the MSCI Asia-Pacific index excluding Japan rose 0.5 percent.

US stocks extended a rally for a third day on Tuesday as sharp gains in oil prices lifted energy shares and traders factored in increased expectations for central bank stimulus.

Asian shares rose on Wednesday as investors kept hopes high for more monetary policy stimulus to support the faltering global economy,but trading may be subdued with US markets closed for the Independence Day holiday.

FACTORS TO WATCH

HSBC Markit Services PMI for June at 10.30 a.m. 0500 GMT

Federation of Indian Minerals Industries hold its annual general meeting.

Reserve Bank of India Governor at bank event in Chennai.

Stock market regulator to conduct auction of debt limits for foreign investors at 5:30 p.m. 1200 GMT

Two-day conference on Karnataka mining organised by Oreteam begins.

INDIAN STOCKS TO WATCH

FINANCIAL/REGULATORY

India8217;s federal cabinet on Tuesday referred to a ministerial panel a proposal to charge mobile phone carriers a one-time fee for their existing second-generation airwave holdings,based on a price to be determined by an upcoming auction,a senior government official said.

The UK based Children8217;s Investment Fund Management TCI has come in support for an amendment to the Companies Act,that requires government firms to disclose the financial impact of government directives on such firms.

Audit teams hired by capital market regulator Sebi have questioned the way several asset management companies sell liquid schemes 8211; the most popular mutual fund product. They suspect that fund houses give a better deal to select customers by advising them to split investments and benefit from a possible price advantage.

The government is gearing up to remove roadblocks to attract investments in oil and gas exploration and resolve contentious issues such as pricing of KG-D6 gas flagged by Reliance Industries and British oil major BP. The Prime Minister8217;s Office PMO is directly monitoring developments in the oil amp; gas sector and exploring ways to expedite approvals,particularly for matters involving departments such as defence and environment. Absence of approvals has jammed exploration activity in 80 blocks.

The finance ministry has directed banks with substantial overseas presence to arrange credit for Indian exporters in a bid to halt a sharp slide in shipments from Asia8217;s third-largest economy. Banks with overseas presence will have to extend credit directly or make funds available to exporters through smaller banks for which arrangements have to be finalised within a week,the finance ministry has told chief executives of public and private sector banks in a letter sent on Monday. New Delhi,which stood firm against the global potash cartel last year,has decided to defer fresh imports of the fertiliser to the end of the current fiscal year,in what might help the government considerably reduce subsidy outgo for the year. India imports roughly 6 million tonnes of potash worth around 3 billion every year.

A slowing economy is taking its toll on the corporate sector with a massive 190 billion rupees worth of loans being referred to the corporate debt restructuring CDR cell in the June quarter. This is 30 percent more than the cell received in the three months to March 2012. The number of accounts brought to the cell in the June quarter was also far higher at 37,against 24 in the March quarter. Among companies looking for easier repayment terms are Mudra Lifestyle,Visa Steel ,Dighi Ports and Steelco Gujarat.

ENERGY/COMMODITIES

Following the setback in its legal dispute with Indraprastha Gas,downstream oil regulator Petroleum and Natural Gas Regulatory Board PNGRB has put on hold its order on the rates charged by city gas distribution companies. The regulator is awaiting clarity on its statutory powers before proceeding on the contentious issue of rates.

A two-year old ban on iron ore exports from India8217;s southern Karnataka state which has halved shipments from the world8217;s No. 3 supplier will be the focus of an industry gathering in Bangalore as pressure mounts for the restriction to be lifted.

AUTOS/INDUSTRIALS

Indian port operator Gujarat Pipavav Port Ltd is selling shares to institutional investors to raise about 37 million to fund its expansion plans,two sources with direct knowledge of the situation said.

The need to hasten implementation and avoid any further confrontation with other shipbuilding companies may see Mazagon Dock,India8217;s largest defence shipyard,split its ambitious 1-trillion rupees naval order book among four major Indian private shipbuilders. After Pipapav Defence,Mazagon is considering similar joint ventures with Lamp;T,ABG Shipyard and Bharati Shipyard,say people in the know.

GTL Infrastructure said on Tuesday it has set up a committee to restructure its outstanding dollar convertible bonds due in November this year,sending it shares up as much as nearly 20 percent.

AVIATION

Around 450 pilots of Air India who fly international routes called off their agitation on Tuesday,after 58 days 8211; one of the longest strikes in India8217;s aviation history. The Indian Pilots Guild informed the Delhi High Court that it would call off the strike and that its members would join duty in 48 hours.

The Air India board on Tuesday discussed the feasibility of offering voluntary retirement scheme VRS to some of its 29,000 employees,as the national carrier fights for survival in the face of mounting debt. Executive Director industrial relations Vinita Bhandari made a presentation to the board members about the revival road map,airline sources said.

As Jet Airways attempts to navigate away from financial turbulence,two of its senior executives put in their papers citing better career prospects. Jet8217;s Senior Vice-President finance M Shivkumar and Company Secretary Monica Chopra quit the country8217;s largest private carrier promoted by Naresh Goyal last week.

TELECOMS

India8217;s Prime Focus Ltd,a film services company that was instrumental in making such movies as director James Cameron8217;s Avatar and Bollywood star Shah Rukh Khan8217;s My Name is Khan,plans to raise 150 million 8.13 billion rupees in a U.S. share sale later this year,three sources said on Tuesday. JPMorgan Chase amp; Co and Deutsche Bank AG are advising Prime Focus on the planned sale of American depositary receipts.

Hong Kong billionaire Li Ka-shing plans to sell telecom business process outsourcing BPO unit Hutchison Global Services,attracting interests from Tech Mahindra and UK8217;s Serco,said banking sources briefed on the matter. This is Li Ka-shing8217;s only significant business interest in India after he sold mobile telecom service joint venture Hutchison Essar to Vodafone for 11 billion five years ago. China8217;s ZTE says gets GSM deal,a gear contract for 10.15 million mobile lines,from India8217;s Bharat Sanchar Nigam Ltd.

Mobile phone sales crossed the 50 million mark in the January-March quarter of this year,up 9.1 percent from last year at the same,according to the latest data released by Cybermedia Research India. Smartphones made up 5.3 percent of the phones sold and almost a quarter of the total handset revenues in India.

PHARMACEUTICALS

Cipla,India8217;s second-largest drug maker,has hired Teva8217;s former vice-president Frank Pieters to spearhead its European respiratory business,a move that signals the company8217;s intention of benefiting from blockbuster inhaler products going off patent in the European market.

India has urged Russia to open its booming 19-billion pharmaceuticals market and expedite the list of 500 drugs that it currently imports from India. During his recent visit to St Petersburg,Commerce,Industry and Textiles Minister Anand Sharma urged Russian authorities to let Indian pharmaceutical companies form joint partnerships with Russian companies.

OTHER FACTORS TO WATCH

Indian debt/FX factors to watch

Euro amp; 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