Market may open higher

Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 26.50 points at the opening bell. Lupin, NMDC, Ranbaxy Laboratories and Tata Motors are set to unveil their quarterly earnings today, 7 August 2013.

The government on Tuesday, 6 August 2013, named Dr. Raghuram Rajan as the next Governor of the Reserve Bank of India (RBI) for a term of three years after D Subbarao's tenure ends on 4 September 2013. Rajan, who is currently Chief Economic Adviser in the finance ministry, joined the government last August, having previously been chief economist at the International Monetary Fund and a professor at the University of Chicago.

IT stocks will be in focus after Cognizant Technology Solutions Corp reported better-than-expected second quarter results and raised its forecast for the year as clients in North America invest more in IT services and software, encouraged by a steady economic recovery. Cognizant on Tuesday said it had earned a profit of $300 million for the June quarter, beating street expectations and surpassing its own guidance. The profit is up 5.7% sequentially and 19.2% compared to the year-ago quarter. The revenue stood at $2.16 billion, up 7% quarter on quarter and 20.4% compared to the same quarter a year ago. Teaneck, New Jersey-based Cognizant, which has most of its employees in India, said it expects 2013 earnings of at least $3.96 per share on revenue growth of at least 19% to $8.74 billion. It had previously forecast earnings of at least $3.95 per share on revenue growth of at least 17% to $8.60 billion.

CRISIL turns ex-dividend today, 7 August 2013, for interim dividend of Rs 3 per share for the year ending 31 December 2013.

Sun TV Network turns ex-dividend, for interim dividend of Rs 2.25 per share for the year ending 31 March 2014.

PTC India turns ex-dividend today, 7 August 2013, for dividend of Rs 1.60 per share for the year ended 31 March 2013 (FY 2013).

Key benchmark indices slumped on Tuesday, 6 August 2013, as better-than-expected US service industries data fueled speculation the US Federal Reserve will reduce stimulus to the US economy soon. The S&P BSE Sensex lost 449.22 points or 2.34% to 18,733.04 on that day, its lowest closing level since 26 June 2013.

Foreign institutional investors (FIIs) bought shares worth a net Rs 212.74 crore on Tuesday, 6 August 2013, as per provisional data from the stock exchanges.

Asian stocks dropped on Wednesday, 7 August 2013, after overnight losses in the US on monetary-policy concerns, with Japan taking an especially heavy hit from gains for the yen. Key benchmark indices in China, Japan, Hong Kong, Taiwan, and South Korea were off 0.24% to 2.01%. Singapore's Straits Times rose 0.28%.

US stocks extended losses into a second day Tuesday after Fed Bank of Chicago President Charles Evans, who has been among the strongest proponents of the record monetary accommodation in the US said he expects the central bank to begin tapering its asset-purchase program by the end of the year.

The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.

Data yesterday showed the US trade deficit narrowed more than economists expected in June to the least since October 2009. Separately, job openings rose to 3.94 million in June from 3.91 million in May, the US Department of Labor reported.