Markets may open volatile; pharma shares in focus

FIIs were net sellers on Tuesday to the tune of Rs 101.98 crore

Benchmark indices are likely to open on a volatile note amid mixed trends in Asian markets and FIIs turning net sellers to the tune of Rs 102 crore on Tuesday. Markets may edge higher later as global cues remain firm and overnight US markets closed at record highs.
 
Later in the day, the U.S. Federal Reserve will release the minutes of its last policy meeting, which markets will watch for any clues on when the Fed will start raising rates.
 
 At 8:30AM, the early indicator SGX Nifty was up 11 points at 8,468.

Japanese shares are trading flat with a positive bias after PM Abe announced fresh elections and the proposed hike in consumption tax was delayed. Investors will be looking at the Bank of Japan meeting scheduled later today for cues.

 
Chinese shares remain subdued on profit booking after the launch of connect scheme between Hong Kong and China stock market. Shanghai Composite and Hang Seng indices are trading with losses of 0.2-0.3% each.
 
 
US markets closed higher reaching record highs boosted by gains in healthcare shares and benign data on US inflation. The Dow Jones industrial average rose 0.2% to 17,687.82, a record high. The S&P 500 gained 0.5%, to 2,051.8, its biggest one-day move since Nov. 5.

Strong gains in German shares which rose as recession worries ebbed in the Europe's biggest economy also helped sentiments. DAX index closed with gains of more than 1.5%.

 
 
Stocks to watch
 
 Ranbaxy will be in focus after the generic drug maker Ranbaxy  sued the US Food & Drug Administration (US FDA) for revoking the approvals to two of its key drugs — Valcyte (Roche) and Nexium (Astrazenca). The lawsuit, filed in District of Columbia in the US and reviewed by Business Standard, names US Health Secretary Sylvia Burwell.
 
Pharma majors, Sun Pharma and Dr Reddys will also be in focus as the probe initiated by the US legislature against Sun Pharma and Dr Reddy's over the steep increase of their drug prices in the US market is set to intensify.

 
Maruti Suzuki shares may see fresh buying on yen falling to a seven year low against US Dollar.
 
Mahindra and Mahindra stock may come under pressure after the company recalled around 2,300 of its vehicles on account of suspect vaccum pumo issues.
 
 GAIL is in focus on news that it  is likely to sign a gas-supply agreement with Houston-based Vega Energy Partners shortly. The deal is for supplying gas to the Cove Point LNG Terminal project located at Lusby in Maryland, US