Airline stocks to see interest on Southwest's Airtran acquisition
Indian equity markets are likely to open flat Tuesday morning after weak global markets and inability to sustain at higher levels in Monday's trade.
US Markets closed in the red despite of M&A deals. Low-cost carrier Southwest bought AirTran for $1.4b, a premium of 60 pct. Indian airline stocks are likely to see some interest backed by this news.
Asian markets in red
Nikkei is trading nearly 68 points down while Australia is trading flat. The Bank of Japan will discuss further easing of its monetary policy at its upcoming board meeting, according to a report published Tuesday.
Dalal Street - Flows continue
Foreign institutional investors (FIIs) have pumped nearly $18 billion (Rs 81,880 crore) in Indian stocks so far this year, their highest investment in dollar terms in a calendar year.
In September alone FIIs have net-bought shares worth nearly $5 billion (Rs 22,700 crore). While India continues to be a hot destination for FIIs, we expect minor hiccups in the form of swift corrections to hit the market time and again.
Dalal Street might take on new highs next month. With US economy struggling, Euro crisis end not in sight and market factoring part of these concerns, the situation is favouring the bulls in the medium term. Coal India IPO is a small trigger for bears but given the kind of inflows the issue might not have an impact on D-Street.
F&O expiry (30th September) will see markets trading in a extremely volatile fashion.