(RTTNews) - The Indian market may open lower on Tuesday on concerns surrounding the global economic recovery. As liquidity has vanished and concerns remain on the valuation front, another bout of profit taking may weigh on market movement.

The earnings season has come to a close and today, traders are likely to react to disappointing earnings posted by Hindustan Unilever, Reliance Communication, Suzlon, Reliance Infrastructure, Unitech and Hindalco. On the other hand, state-run SBI reported a better-than-expected 10% rise in quarterly net profit.

On the economic front, India’s manufacturing activity expanded at a slightly slower pace in October, the results of HSBC Markit Purchasing Mangers’ Index survey showed. The new orders index fell to 54.5 in October from 55 in September.

Auto makers could be in the spotlight as they have announced robust production growth for October. Likewise, steel makers and cement manufacturers may see some stock-specific action as they announce production and dispatch numbers for October.

After a sharp setback on Friday, stocks on Wall Street showed modest gains overnight amid a slew of economic reports and some Fed comments on the financial sector.

While data on manufacturing activity in the month of October and the surge of the pending home sales index lifted sentiment, concerns voiced by Federal Reserve’s associate director about the state of the financial system capped gains to an extent. The Dow rose 0.79%, the S&P 500 advanced 0.65% and the Nasdaq edged up 0.2%.

The Indian ADRs closed mixed. Reddy’s Laboratories surged up over 5%, ICICI Bank rallied over 4%, Wipro and Sterlite Industries rose by about 2% each, HDFC Bank gained 1.37% and Infosys added 0.83%, but MTNL moved down 1.72% and Satyam Computer Services shed 2.84%.

Crude oil finished higher on Monday after a choppy ride with some encouraging manufacturing data from the U.S and China offsetting a decline in U.S. equities. China’s manufacturing grew at the fastest pace in 18 months last month, according to a purchasing managers’ index from HSBC Holdings Plc. Light sweet crude for December delivery closed at $78.13 per barrel, up 13 cents on the session.

In corporate news, Alfa Laval India has secured a Rs 70-crore project from Vietnam-based PetroVietnam Group. DLF plans to build one lakh houses costing under Rs.20 lakh each.

According to reports, Hindalco Industries plans to raise around Rs.3,000 crore either through an institutional share placement or by selling shares in overseas markets. Mukesh Ambani’s Reliance Industries is likely to foray into the education sector.

Singapore Telecommunications has entered into a conditional share purchase agreement with Bharti Airtel to buy an additional 1.52% stake in the company.

Ambuja Cements said its October shipments grew a modest 3% year-over-year. State Bank of Mysore has decided to raise up to Rs.600 crore via a rights issue.

Last week, the Indian market fell sharply after the Reserve Bank of India signaled unwinding of monetary stimulus. Uninspiring September-quarter earnings from some top bluechip companies like Reliance Industries and Bharti Airtel and weak global cues on concerns about global economic recovery also weighed on market movement.

While the benchmarks Sensex and the Nifty fell by around 5.4% and 5.7%, respectively, the small-cap and the mid-cap indexes on the BSE tumbled nearly 8% each, underperforming frontline stocks.

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Posted in Categories: Releases, Stocks, USA.

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