MUMBAI, May 19 (Reuters) - Indian shares are expected to
extend their gains on Tuesday, a day after they leapt more than
17 percent, on hopes a new stable government will be able to
push reforms such as privatisations and infrastructure
spending.
Nifty futures traded in Singapore SINc1 were up 4.1
percent by 0336 GMT, pointing to a higher opening in India.
"One more circuit breaker can be expected soon after
opening today. But after the halt, we may go down as selling
compulsions increase," Arun Kejriwal, strategist at research
firm KRIS, said.
On Monday, investors cheered the Congress coalition's
election victory over the weekend by sending the market up
nearly 15 percent within seconds of opening, triggering circuit
breakers that halted trade for two hours.
A final circuit breaker was set off almost immediately
after trading resumed, halting trade for the rest of the day.
The 30-share BSE index jumped 17.34 percent, or
2,110.79 points, to 14,284.21 points before trade was finally
halted at noon.
A rise of 975 points, or 6.8 percent, in the benchmark on
Tuesday would trigger the first circuit breaker, halting trade
for an hour.
A jump of 300 points, or 6.9 percent, on the National Stock
Exchange's 50-share NSE index would also halt trading
for an hour. It closed up 17.74 percent at 4,323.15 on Monday.
Infrastructure plays such as Larsen & Toubro (LART.BO) and
Reliance Infrastructure (RLIN.BO) and state-run firms such as
State Bank of India (SBI.BO) will be watched as they are
expected to benefit from possible new reforms.
Asian markets were higher on Tuesday, with Japan's Nikkei
.N225 up 2.9 percent, while MSCI's measure of other Asian
markets .MSCIAPJ rose 2.9 percent.
--------------------MARKET SNAPSHOT AT 0338 GMT--------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 909.71 3.04% 26.830
USD/JPY JPY= 96.45 0.23% 0.220
10-YR US TSY YLD US10YT=RR 3.2318 -- -0.002
SPOT GOLD XAU= 921.65 0.49% 4.450
US CRUDE CLc1 59 -0.05% -0.030
DOW JONES .DJI 8504.08 2.85% 235.44
ASIA ADRS .BKAS 108.31 3.21% 3.37
-------------------------------------------------------------
STOCKS TO WATCH
* Grasim Industries (GRAS.BO), Indian Bank (INBA.BO),
Mercator Lines (MRCT.BO) report financial results on Tuesday.
* Dr Reddy's Laboratories (REDY.BO) after the Indian drug
maker reported a consolidated net loss of 9.8 billion rupees
for the March quarter. [ID:nBOM461350]
* KS Oils Ltd (KSOI.BO) after the Economic Times cited an
unnamed source as saying the edible oil maker is raising 4.5
billion rupees from investors including New Silk Route,
Citigroup Venture Capital and Baring Private Equity Partners,
through equity and convertible warrants.
* Bangalore-based real estate firm Sobha Developers
(SOBH.BO) after it posted a 52 percent fall net profit for the
year ended March.
* HT Media (HTML.BO) after the newspaper publisher posted a
44 percent fall in net profit for the March quarter.
FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee to strengthen, stocks watched
[INR/]
* Indian bond yields to rise on cbank announcement
[IN/]
* FOREX-Yen steadies after fall on improved risk appetite
[FRX/]
* Oil pauses at $59 after six-month high settlement
[O/R]
* Global stocks rise on economy optimism, bonds off
[MKTS/GLOB]
* Wall St gains as Lowe's lifts mood on economy
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Pratish Narayanan and Swati Pandey; Editing by
Ranjit Gangadharan)
