Stocks seen higher on strong Asian cues

Equities should start higher on Tuesday, taking cues from firmer Asian markets, but there will be resistance after rallying more than 3 per cent on Monday and as investors are wary about quarterly earnings.

Private sector lender Axis Bank releases results on Friday and IT bellwether Infosys Technologies (INFOSYS.BO : 2328.3 -58.55) will follow on Jan. 13.

Analysts widely expect dismal quarterly earnings due to a sharp fall in demand, slowing economic growth and recession in major economies such as the United States, eurozone and Japan.

"Market may open flat to slightly positive today mainly on the Asian cues," said Anish Marfatia, vice-president at Avendus Capital.

He said earnings worries would weigh on sentiment.

Traders said banking shares would be in focus after the RBI's rate cuts on Friday.

"While fresh round of rate cuts may not be on the way, the trend clearly is that interest rates are headed downwards," said Ambareesh Baliga, vice-president of Karvy Stock Broking.

The benchmark 30-share BSE (^BSESN : 16632.01 -222.92) index rose 3.2 per cent to 10,275.60 points on Monday, boosted by rate cuts and an economic stimulus package to bolster sagging growth.

Asian shares were mostly positive. At 0322 GMT, Japan's Nikkei was up 1.1 per cent and the MSCI index of Asia-Pacific shares outside Japan had climbed 0.97 per cent. Nifty (^NSEI : 4941.75 -63.8) futures traded in Singapore was up 0.35 per cent.