By RTT News, March 05, 2013, 09:50:00 PM EDT
(RTTNews.com) - Indian shares may extend the previous session's rally, tracking firm global cues. Asian markets are trading higher across the board, with Japanese and Australian shares reaching fresh multiyear highs on growth optimism after the Dow industrials hit a record high overnight.
Figures released by the Australian Bureau of Statistics showing gross domestic product (GDP) expanded 0.6 percent in the December quarter, in line with expectations, also bolstered risk sentiment. Investors are awaiting the outcome of Bank of Japan's two-day policy meeting for further direction, although the central bank is widely expected to refrain from taking any major steps at its meeting tomorrow.
Indian shares rose sharply on Tuesday after Finance Minister P Chidambaram said the government will soon announce more measures to boost exports and investment. Global cues were very supportive after Federal Reserve Vice Chairman Janet Yellen came out in support of Chairman Ben Bernanke's efforts to keep interest rates low and China vowed to boost spending and maintain a prudent monetary policy in 2013.
The benchmark BSE Sensex ended the day up 265 points or 1.4 percent at 19,143, while the broader Nifty index rose by 86 points or 1.5 percent to 5,784. The Indian rupee, meanwhile, gave up early gains to end down 9 paise at 54.94 against the dollar, weighed down by a weaker euro and renewed concerns over widening current account deficit.
In corporate news, the Finance Ministry is likely to consider Malaysian budget carrier AirAsia's proposed joint venture to launch an airline in India today, reports suggest.
Videocon Industries has launched an auction to sell its 10 percent stake in the Rovuma, Mozambique gas field.
Tata Motors-owned Jaguar Land Rover has unveiled plans to increase investment in a new engine manufacturing center in the U.K. by more than 40 percent to over 500 million pounds.
Mahindra & Mahindra said it would offload 34 lakh shares in Mahindra Holidays & Resorts through the Offer for Sale route tomorrow.
U.S. stocks closed firmly in positive territory overnight, with upbeat reports on the service sectors in Europe and the U.S. underpinning sentiment. The Dow rose 0.9 percent to a record closing high, while the tech-heavy Nasdaq and the S&P 500 gained 1.3 percent and 1 percent, respectively to reach multi-year highs.
European stocks rallied to their highest level in 41/2 years on Tuesday, helped by a slew of solid earnings reports and stronger-than-expected euro-zone retail sales data. An indicator of Eurozone's service sector activity declined in February, but the rate of fall was less steep than estimated earlier, detailed results of a survey by Markit Economics showed. Benchmark indexes in the U.K., Switzerland, France and Germany rose between 1.4 percent and 2.3 percent.
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