 "10 things you should know before the opening bell")
Global cues:
Japanese shares rose and the yen eased after a report on Tuesday said Prime Minister Shinzo Abe is considering a corporate tax cut as a way to offset the impact of a planned two-stage increase in the sales tax.Tokyo’s Nikkei share averageclimbed 1.7 percent, rebounding after it fell to its lowest since end-June following Monday’s GDP data, to break above its 100-day moving average.
The Dow and the S&P 500 indexes dipped on Monday, extending losses from Wall Street’s worst week since June last week, but Apple and BlackBerry kept the Nasdaq index afloat.Trading volume was light, marking one of the five days this year with fewer than 5 billion shares traded over a full session.But hedging activity picked up in the options market as traders brace for a short-term decline in equities, according to Credit Suisse.
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The dollar enjoyed a tentative recovery on Tuesday while the yen sagged on a media report Japanese Prime Minister Shinzo Abe is considering a corporate tax cut.The dollar rose 0.3 percent in early trade to fetch 97.23 yen, extending its rebound from a seven-week low of 95.81 last Thursday.
Business/Stock news:
DLF, India’s largest real estate developer, reported a 38 percent fall in quarterly net profit, weighed down by higher expenses on land and property development.
State Bank of India(SBI), the country’s largest lender, posted a second consecutive drop in quarterly net profit, missing estimates, on worsening asset quality, higher operating expenses and muted growth in interest income.The state-run bank posted on Monday a 13.6 percent drop in net profit to Rs 3,241 crore in the fiscal first quarter that ended in June compared with Rs 3752 crore a year ago.
Economy news:
India unveiled additional measures late on Monday aimed at attracting capital inflows to a weak economy and to control a wide current account deficit that has contributed to a decline of some 12 percent by the rupee against the dollar since May.Finance Minister P Chidambaram said the measures will help contain the deficit at $70 billion for the fiscal year ending in March, or an estimated 3.7 percent of gross domestic product, well below the record 4.8 percent in the previous fiscal year.
Onion prices in India surged by a third on Monday to hit a record high on a supply squeeze due to last year’s drought in key growing areas, and as this year’s crop was damaged in some southern and northern states due to heavy rainfall.
India reported asecond straight contraction in industrial production in June, underscoring the challenge for policymakers to stabilise the battered rupee without hurting economic revival.India’s industrial production index ( IIP) contracted 2.2 percent in June after falling 1.6 percent in May.