INDIAN BENCHMARKS are likely to witness cautious opening as the global cues look mixed with SGX Nifty trading 8.50 points lower. Indian equity benchmarks are poised for a mixed opening on Tuesday as investors turn their focus to the Budget Session which begins today amid hopes that the NDA government will be able to get the green light for crucial economic reform bills such as GST which have remained stuck in the Upper House of Parliament where the centre lacks a majority. Progress on GST and its timely implementation will be important to putting Asia’s third biggest economy on the double digit growth path. Caution ahead of the Railway Budget and Economic Survey later this week may restrict gains in the local bourses while volatility could remain high as traders roll over their positions ahead of the February Futures & Options (F& O) contracts expiry on Thursday. Indian stock markets rose on Monday, posting their fourth consecutive day of gains, as a recovery in the prices of crude oil and other commodities lifted stocks such as Reliance Industries and Oil and Natural Gas Corp. The S&P BSE Sensex and CNX Nifty ended 0.34%-0.33% higher each.
Asian stocks were trading mixed as oil prices turned lower after a rally on Monday, rekindling fears over a faltering global economic recovery while a weaker Yuan took toll on stocks in mainland China and Hong Kong which fell today.
Wall Street surged on Monday with benchmark S&P 500 rising to the highest level in six weeks as an impressive rebound in crude oil prices helped ease concerns that a global economic slowdown is worsening while upbeat Chicago factory data also bolstered sentiment.
European stocks rose on Monday as firmer mining company shares helped offset concerns about Britain's potential exit from the European Union, and a fall in HSBC.
Trend in FII flows:
The FIIs were net sellers of Rs -656.91 Cr in the cash segment on Monday while the DIIs were net buyers of Rs 597.87 Cr, as per the provisional figures released by the NSE.