(RTTNews) - Tuesday, the Indian market is likely to open lower due to weak global cues after concerns about massive credit losses at Citigroup dragged bank stocks in the US markets overnight.

Currently, markets across the Asia-Pacific region are trading mostly lower. Japan’s Nikkei 225 index is down 4.30%, South Korea’s KOSPI is trading flat and China’s Shanghai Composite index is declining 1.18%, while Hong Kong’s Hang Seng index is up 0.05%.

A rebound in the industrial output for November may help a modest recovery, but the market could remain volatile on account of alternate bouts of buying and profit taking.

Stock-specific action on account of expectations over quarterly results and global cues, especially from the European markets and the US markets, are also likely to impact market movement.

Meanwhile, IT bellwether Infosys Technologies declared a healthy performance for the December quarter. The company’s net profit rose 14.5% to Rs. 1641 crore from Rs.1432 crore in the previous quarter. Income stood at Rs.5786 crore vs. Rs.5418 crore in the same quarter last year.

Overnight, the US markets ended sharply lower as investors reacted to disappointing corporate news and expressed apprehensions unofficial start of the earnings season. Falling prices of oil and other commodities also reinforced fears about a deteriorating economy. The Dow Jones Industrial Average slumped 1.5%, the Nasdaq Composite index plummeted 2.1% and the S&P 500 index tumbled 2.3%.

The Indian rupee extended its fall on Monday, weighed down by dollar demand from companies and huge losses in the stock market. The currency closed at Rs.48.84 against the dollar compared to its Friday’s close of Rs. 48.27.

On Monday, the Indian market extends losses for the third day in a row despite a better-than-expected industrial production data for November. Traders off-loaded positions across the sectors, as investor sentiment remained fragile on account of weak global cues and apprehensions over the quality of corporate scorecard for the December quarter

Stocks across the board ended deep in the red. Metal, realty and IT stocks bore the brunt of the selling. The BSE Sensex finished at 9,110, down 296 points or 3.15%, while the S&P CNX Nifty index shed 100 points or 3.48% at 2,773.

Stocks to Watch

Infosys is likely to rise on reports that the company would gain the most among the top Indian IT players from Satyam’s loss of credibility because of its reputation as a firm with high corporate governance standards as well as its US listing. Gujarat NRE Coke may be in focus after the company revealed major investment plans in Gujarat.

Suzlon Energy may see some activity after Suzlon Gujarat Wind Park, a wholly- owned subsidiary of the company, signed a Memorandum of Understanding with the Government of Gujarat for developing wind power projects of up to 1,500 MW in the Kutch-Saurashtra region of Gujarat.

Satyam Computers could be in focus on reports that the government has offered to throw a financial lifeline to the company to help it pay salaries to some 53000 employees and run its operations

Oil-marketing stocks, namely HPCL, BPCL and IOC are likely to move after crude oil price plunged below $ 38 a barrel.

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Posted in Categories: Eurozone, Japan, Releases, Stocks, USA.

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