Indian shares are likely to open marginally higher after June quarter current account deficit was in line with estimates and tracking gains in most Asian markets.
At 8:10AM Indian Standard Time the SGX Nifty was up 40 points at 5,806. Indian financial markets will be closed on Wednesday, on account of Gandhi Jayanti.
In line with estimates, India’s current account deficit rose to 21.8 billion (4.9% of Gross Domestic Product) for the first quarter ended June 2013, due to rise in imports especially that of gold and shrinking exports.
The lower trade deficit and higher flow of dollars from overseas Indians, taking benefit of weak rupee, will lead to improvement in the second quarter (ended September 2013). But, India’s the external sector continues to vulnerable, warned D K Joshi, chief economist at CRISIL.
US stocks declined on Monday on rising worries over a US shutdown.In the coming days, a political face-off in the US over its government’s proposal to raise the country’s debt ceiling is expected to keep stock investors worldwide, including in India, on the edge. Economists and analysts said failure to increase the debt limit by October 17 would result in the US defaulting on its loans, which could potentially damage the sentiment in global financial markets.
If the Congress does not clear the budget before Tuesday, the immediate consequence would be a possible government shutdown in the US.
Among key US share indices the Dow Jones ended down 0.8% at 15,130, the Nasdaq Composite lost 0.3% at 3,771 and the S&P 500 ended down 0.6% at 1,682.
STOCKS TO WATCH
Automobile and cement shares are likely to be in focus, with companies set to announce sales and dispatch numbers.
SEBI wants Naresh Goyal to sell another 6% stake in Jet Airways before the company makes the proposed 24% preferential allotment to Abu Dhabi-based Etihad Airways.
Oil marketing companies have decided to go for a cut in petrol prices by Rs 3.05 a litre with effect from Tuesday.
US’ Cooper Tire & Rubber on Monday said shareholders approved its sale to Apollo Tyres, clearing the decks for the $ 2.5-billion deal.
Infosys, India’s second largest IT services company is understood to have bagged a large IT outsourcing contract from Royal Bank of Scotland (RBS) to develop the banking system for Williams & Glyn’s Bank.
The government has allowed airport operators GMR and GVK to bid for the six airports to be awarded in the second phase of airport privatisation.