A number of top firms are announcing Q3 results today. These include State Bank of India, Tata Motors, Grasim, Bharti Airtel, Cipla and Indian Hotels. The market will take direction from how these prominent results shape in.
FIIs were net buyers to the tune of Rs 77 crore on Friday 19 January, the day when Sensex had lost 35 points. FIIs have resumed buying after their heavy inflows earlier during the month which had triggered a sharp market fall. FIIs were net buyers in 6 out of 7 trading session from 11 January to 19 January. As per provisional data, FIIs were net buyers to the tune of Rs 218 crore on Monday 22 January, the day when Sensex had risen 27 points.
FIIs were net buyers to the tune of Rs 288 crore in index-based futures on 22 January. They were net sellers to the tune of Rs 85 crore in individual stock futures on that day.
Volatility may remain high on the bourses in the run up to the expiry of January 2007 derivatives contracts on Thursday (25 January 2007).
Meanwhile, the centre late on Monday cut customs duty on key inputs with immediate effect. The customs duty on portland cement was cut to zero from 12.5 percent; ferro-alloys stainless steel and other alloy steel to 5 percent from 7.5 percent; calcined alumina to 5 percent from 7.5 percent; pipes and tubes of aluminium, copper and zinc to 7.5 percent from 12.5 percent.
Other cuts included: project imports to 7.5 percent from 12.5 percent; specified capital goods and their parts to 7.5 percent from 12.5 percent. The reduced customs duty of 7.5% has been extended on project import to airport development and metro rail projects. A government statement said the step had been taken with a view to reduce the cost of manufacturing and infrastructure development.
Asian stocks fell on Tuesday, led by Japanese technology shares on worries about the earnings outlook for the sector. They came under pressure also due to slide in their US peers on Monday. Key benchmark indices in Hong Kong, Japan, and Singapore were down by between 0.05% to 0.4%. Key indices in South Korea and Taiwan bucked the trend and were up slightly.
US stocks slid on Monday as investors sold off shares of technology firms on worries about their earnings outlook, while a brokerage downgrade hurt shares of aircraft maker Boeing Company, pushing the blue-chip Dow average down to record its steepest one-day drop in two months. The Dow Jones fell 88.37 points, or 0.70 percent, to end at 12,477.16. The Standard & Poor's 500 Index declined 7.55 points, or 0.53 percent, to finish at 1,422.95. The Nasdaq Composite Index lost 20.24 points, or 0.83 percent, to close at 2,431.07.
Oil eased, continuing the previous day's decline amid robust stockpiles in consumer nations. Crude had spiked on Friday on colder weather in the US northeast, the world's top market for heating oil, but on Monday resumed a sell-off that has seen prices fall around 16 percent since the start of the year. NYMEX crude for March delivery was down 11 cents at $52.47 a barrel on Tuesday.
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