Indian shares may open higher on Tuesday on hopes of further reform steps by the government after the Lok Sabha approved an amendment bill to make it easier for banks to recover bad loans and the government cleared a proposal to divest a 10 percent stake in state-owned miner NMDC later this week. The government is targeting to raise up to Rs 5,700 crore from the stake sale as part of fiscal deficit management.
Meanwhile, investors await October industrial output data, due out on Wednesday, and monthly inflation figures, which will be released on Friday, for cues from the mid-quarter monetary policy review on December 18.
Indian shares swung between gains and losses before ending little changed on Monday, as mixed global cues prompted investors to take some profits off the table. The benchmark 30-share Sensex ended the session down 14 points or 0.07 percent at 19,410, while the broader Nifty index ended up 1.50 points or 0.03 percent at 5,909.
In corporate news, software services exporter Wipro has sold its vanaspati brand, ‘Sunflower’, to U.S.-based food major Cargill.
Automakers would be in focus after Sri Lanka imposed fresh import duty on automobile exports from India.
Bharti Infratel, the tower arm of telecom major Bharti Airtel, has reportedly received more than Rs. 650 crore from anchor investors ahead of its initial public offering today.
Asian markets are swinging between gains and losses ahead of the U.S. Federal Reserve policy meeting beginning later in the day. The Fed will publish its forecasts for economic growth, unemployment, inflation and the future path of interest rates on Wednesday. Also, with Operation Twist program expiring at the end of the month, the central bank may announce a new asset-purchasing program in its continuing efforts to stimulate growth and add liquidity to financial markets.
U.S. stocks rose slightly overnight, as investors reacted to upbeat data from China and news of political uncertainty in Italy. Traders also kept an eye on developments in Washington, where lawmakers continue to struggle to reach an agreement to avoid the looming fiscal cliff.
While some Republicans have indicated they would be willing to accept higher tax rates on wealthy Americans, they want the increase in taxes to be combined with significant spending cuts and reform to entitlement programs. The Dow edged up 0.1 percent, the tech-heavy Nasdaq added 0.3 percent and the S&P 500 inched up 0.48 points or less than a tenth of a percent.
European stocks also ended mostly higher, reversing early losses, following Italian Prime Minister Mario Monti’s surprise announcement that he will resign by the end of the year. Positive factory output and retails sales data out of China and better-than-expected U.S. hiring soothed concerns that the European debt crisis was enveloping Italy. Benchmark indexes in the U.K., Switzerland, Germany and France rose between 0.1 percent and 0.3 percent.
by RTT Staff Writer
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