Market may extend recent rally on firm Asian stocks

The market may extend four days gains on firm Asian stocks. The latest data showing that foreign institutional investors (FIIs) had stepped up buying of Indian stocks may also help sentiment. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 39 points at the opening bell. Foreign institutional investors (FIIs) bought shares worth Rs 819.41 crore and domestic funds sold shares worth Rs 575.06 crore on Tuesday, 28 June 2011, as per provisional figures released by the stock exchanges.



Key benchmark indices advanced for the fourth straight day to attain 3-week closing highs on Tuesday, 28 June 2011 as the latest data showed that foreign institutional investors (FIIs) had stepped up buying of Indian stocks. The BSE Sensex jumped 80.04 points or 0.43% to settle at 18,492.45, its highest closing level since 7 June 2011 on Tuesday. The BSE Sensex has risen 941.82 points or 5.36% in four trading sessions from a recent low of 17,550.63 on 22 June 2011.

The market may remain volatile in the near term as traders roll over positions in the derivatives segment from June 2011 series to July 2011 series. The near-month June 2011 derivatives contracts expire on Thursday, 30 June 2011.

State-run explorer Oil and Natural Gas Corporation's (ONGC) board on Tuesday approved a follow-on share sale plan, but the company will file papers with the markets regulator only after it gets the greenlight from the government. The company had hoped to launch the offer in July. The offer, expected to raise up to $2.8 billion, has been delayed by several months as rising crude oil prices and consequently higher subsidy burden kept the state-run firm away from the market.

Shares of Bajaj auto turns ex-dividend for dividend of Rs 40 per share for the year ended March 2011.

Expectations for Q1 June 2011 results will start building as the first quarter draws towards a close. Housing finance major HDFC kicks off the results season on 8 July 2011. IT bellwether Infosys Technologies will unveil Q1 results on 12 July 2011.

A hike in transportation costs will add to cost pressure of India Inc. As per reports, freight rates have gone up by 8% to 9% with immediate effect on all routes across India following the latest hike in diesel prices.

The latest hike in diesel and LPG prices will also add to inflationary pressure in the economy. The food price index rose 9.13% and the fuel price index climbed 12.84% in the year to 11 June 2011, data released by the government on Thursday 23 June 2011 showed. In the previous week, annual food and fuel inflation stood at 8.96% and 12.84% respectively. The primary articles price index was up 12.62% compared with an annual rise of 12.86% a week earlier.

Finance chiefs from the United States and India pledged on Tuesday to continue efforts to open up India's financial, retail, manufacturing and infrastructure sectors to competition but offered no specific measures to boost access for American firms.

Asian shares rose, with Tokyo stocks hitting a seven-week high on Wednesday ahead of a vote in the Greek parliament that investors hope will approve an austerity program demanded by international lenders. The key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan were up by between 0.32% to 1.12%. China's Shanghai Composite fell 0.39%.

U.S. stocks rose for a second day on Tuesday on optimism that a solution to Greece's debt crisis was near.

The Greek parliament will conduct a vote today, 29 June 2011, and Thursday, 30 June 2011, on austerity measures and investors are watching the outcome as a key next stage in resolving euro-zone debt issues. Greece is required to slash spending in order to receive its next round of assistance funds.