The U.S. stocks extended their gains for a third day on Tuesday after IBM announced a share buyback plan. The major markets across the Asia-Pacific region are trading higher on Wednesday, tracking the positive lead from Wall Street.
However, the U.S. recession fears continue to persist as revealed by two economic reports. The Conference Board's index of consumer confidence dropped to 75.0 in February from a revised 87.3 in January, the lowest since February 2003, while the latest wholesale inflation report showed producer prices rose by 1.0% in January.The data reinforced worries that the U.S. is suffering from stagflation, a state when the economy weakens amid rising costs.
Crude oil surged Tuesday to a record high after the U.S. dollar dropped to an all-time low against the euro. Crude oil for April delivery rose by US$1.65 to settle at US$100.88 a barrel on the NYMEX. In Asian deals Wednesday, crude was trading at US$101.04 at 8:59 a.m. IST.
The Indian market closed higher after Railway Minister presented the populist railway budget for 2008-2009. Firm global markets also supported domestic bourses. The 30-share BSE Sensex closed up 155.62 points or 0.88% at 17,806.19 and the broader-based S&P CNX Nifty climbed 69.35 points or 1.33% to end at 5,270.05. Nifty February futures were at 5,259.35, a discount of 10.7 points compared to spot closing.
The turnover in the Bombay Stock Exchange was Rs. 4,844.22 crore and that in the National Stock Exchange totaled Rs. 11,061.20 crore. According to provisional data revealed by the NSE, Foreign Institutional Investors were net sellers for Rs. 31.99 crore on the NSE and the BSE in the capital market segment, but turned net buyers for Rs. 1,193.21 crore on the futures & options segment on Tuesday.
Indian rupee gained on Tuesday after equity markets rose on the back of firm global cues. The local unit ended at 39.905-39.915 a dollar up from Monday's close of 39.965-39.975.
In the U.S., the Dow closed up 114.70 points or 0.91% at 12,684.92, the Nasdaq advanced 17.51 points or 0.75% to end at 2,344.99 and the broader S&P 500 index added 9.49 points or 0.69% to finish at 1,381.29.
Indian ADRs finished higher on Tuesday. ICICI Bank climbed 1.28%, but HDFC Bank dropped 0.83%. Infosys rose 0.66%, Wipro jumped 1.99% and Satyam added 0.49%. MTNL advanced 2.09%, Tata Motors edged up 0.11% and Tata Communications surged 6.24%.
Source : rttnews.com