The market may extend gains but upside may be capped as higher levels may attract profit taking. TCS’ results announced after trading hours on Monday were in line with market expectations. The major March 2007 quarter result due today is that of another IT firm HCL Technologies.
Asia-Pacific markets were mostly in the red on Tuesday after US stocks surged on Monday. Key benchmark indices in South Korea, Australia, Singapore, Taiwan and Hong Kong and were down by between 0.08% to 0.77%. Australian and South Korean stocks came off after hitting record highs earlier during the day
US stocks edged up on Monday buoyed by a $25 billion buyout of student lender Sallie Mae and following strong retail sales in March that renewed optimism about economic growth. The Dow Jones industrial average shot up 108.33 points, or 0.86 percent, to end at 12,720.46 -- within shouting distance of its record high of 12,795.93 set on Feb. 20. The S&P 500 gained 15.62 points, or 1.08 percent, to close at 1,468.47. The Nasdaq Composite Index advanced 26.39 points, or 1.06 percent, to finish at at 2,518.33.
The release of US retail sales, which slightly exceeded forecasts for March and were much higher in February, gave investors another reason to return to riskier assets like stocks. The data indicated that consumer spending, a pillar of strength in the US economy, remained strong.
Stocks across the globe have surged over the past few weeks amid growing confidence that the benign backdrop of solid global economic growth and moderate inflation will continue.
As per provisional figures, FIIs were net buyers to the tune of Rs 308 crore on Monday.
From Monday 16 April, stock exchanges have also started releasing provisional data of daily activity of domestic institutional investors (DIIs) which include mutual funds, insurance companies, development financial institutional investors and banks. DIIs were net buyers to the tune of Rs 18 crore on Monday.
From a low of 12,455.37 on 2 April 2007, the Sensex has gained 1,240.21 points (9.95%) in a short while. Firm global bourses and continued FII-buying, have boosted the bourses over the past few days after the Sensex tanked 617 points in a single trading session on 2 April following the Reserve Bank of India (RBI)’s surprise hike in interest rates announced after trading hours on 30 March 2007.