Indian Markets Likely To Extend Gains On Strong Global Cues – Monday Wrap up

Global clues pointed towards a higher opening for the Indian market on Tuesday. However, the volatility is likely to be high ahead of the expiry of March futures and options contracts on Thursday. Experts expects Nifty to witness a market breadth range around 4,540 on declines and 4,680 on advances during the coming sessions.

The Indian Stock markets closed sharply higher on Monday after a volatile trading session. The Sensitive index closed up 294.57 points or 1.96% at 15,289.40, off day’s high of 15,351.31. The broad-based S&P CNX Nifty added 35.9 points or 0.78% to finish at 4,609.85. Nifty March futures were at 4,642, a premium of 32.15 points compared to spot closing.

The U.S. stocks extended their rally Monday after JP Morgan Chase raised its bid for Bear Stearns and a real estate group said sales of existing homes rose rather than declined in February. The stock markets across the APAC region, except for China and Taiwan, are trading firm on Tuesday may due to domestic sentiments.

Crude oil prices have continued to ease in Asian trade on concerns over weaker U.S. energy demand and the U.S. dollar’s rebound from recent sharp declines. Light, sweet crude for May delivery closed at US$ 100.86 on Monday during floor trading at the New York Mercantile Exchange. In Asian deals, crude was trading at US$100.29, down 57 cents at 9:06 a.m. IST.

The turnover in the Bombay Stock Exchange was Rs. 4,682.75 crore and that in the National Stock Exchange totaled Rs. 10,804.74 crore on Monday. According to the provisional data revealed by the NSE, FIIs closed their buys for Rs. 376.13 crore on the NSE and the BSE in the capital market segment and for Rs. 1,801.49 crore on the futures & options segment on Monday.

The Indian rupee rose on Monday on higher capital inflow into equity markets. The partially convertible rupee ended at 40.27-40.28 a dollar, up from Wednesday’s close of 40.43-40.44 a dollar.  On Tuesday, the rupee opened at 40.18 a greenback.

On Monday, the Dow Jones Industrial Average climbed 187.32 points or 1.52% to end at 12,548.64, while the broader Standard & Poor’s 500 Index 20.37 points or 1.53% to finish at 1,349.88. The Nasdaq Composite Index gained 68.64 points or 3.04% to end at 2,326.75.

Indian ADRs finished higher on Monday. MTNL closed unchanged.  ICICI Bank grew 13.1%, Infosys gained 7.1%, Wipro advanced by 6.4%, Satyam climbed 8.2%, Tata Communications soared 8.3% and Tata Motors rose 6.4%.