Tuesday September 1, 09:40 AM

BSE Sensex to open higher; NHPC eyed on debut

MUMBAI (Reuters) - The BSE Sensex (^BSESN : 16632.01 -222.92) is expected to open higher on Tuesday, taking cues from firmer Asian peers and as long-term investors look to enter the market after it fell 1.6 percent in the previous session.

But trading could be choppy as uncertainty about the impact of weak monsoon rains and the pace of a global economic recovery weighs on sentiment.

State-run hydropower generator NHPC Ltd will be watched as it debuts on the exchanges. The utility's IPO for up to $1.25 billion was subscribed more than 20 times and was priced at 36 rupees per share, the top end of the indicated band.

Non-ferrous metals producer Sterlite Industries will be in focus after London copper futures opened more than 3 percent down on Tuesday after a bank holiday weekend, chasing the previous day's losses in Shanghai and New York.

A U.S. federal judge recommended that Mexican miner Grupo Mexico be allowed to take control of U.S. copper miner Asarco LLC, for which Sterlite had made a bid, as it emerges from bankruptcy.

Judge Richard Schmidt of the U.S Bankruptcy Court in Corpus Christi, Texas, said Grupo Mexico's was the better of two plans, as it was more likely to pay Asarco's creditors in full.

Analysts have said the battle for control of Asarco would not have a significant impact on Sterlite's stock.

Automakers such as Maruti Suzuki, Hero Honda and Mahindra & Mahindra will be on the radar ahead of the release of monthly auto sales figures.

Leading vehicle maker Tata Motors (TATAMOTORS.BO : 634.85 -8.85) on Monday posted a consolidated loss for its fiscal first quarter, but remained confident about the prospects of its loss-making Jaguar and Land Rover (JLR) unit.

The company plans to raise at least 100 million pounds ($162 million) for JLR, the Financial Times reported on its website on Monday, citing Ravi Kant, the firm's vice chairman.

Asian markets were higher, with Japan's Nikkei up 0.8 percent by 0347 GMT, while MSCI's measure of other Asian markets rose 0.8 percent.

Nifty (^NSEI : 4941.75 -63.8) India stock index futures traded in Singapore were trading up 0.4 percent, pointing to a higher opening in India.

On Monday, the 30-share BSE index ended down 1.6 percent, or 255.70 points, at 15,666.64, after falling as much as 2.1 percent during trade.

STOCKS TO WATCH

* ACC (ACC.NS : 791.4 -8.7) Ltd after banking and company sources told Reuters India's largest cement maker is looking to raise about 3 billion rupees ($61.5 million) via bonds or loans or a combination of both.

* Britannia Industries Ltd (BRITANNIA.NS : 1623.3 -26.5), after the leading biscuit maker said it had received 220 million rupees from France's Danone to settle a dispute over the 'Tiger' brand.

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