RTTNews - Tuesday, the Indian market may open lower with a negative bias on the back of weak global cues and extended profit taking. While reports about differences within the UPA government over disinvestments and fuel price deregulation are likely to dampen investor sentiment, speculation that the government could abolish the Securities Transaction Tax on equity transactions in the budget may offer some relief. With domestic institutions remaining on a sell mode, the extent of buying by foreign funds may influence market movement. On a net basis, foreign institutional investors sold shares worth Rs.14.47 crore on Monday and domestic funds sold shares worth Rs.875.92 crore, provisional data released by the Bombay Stock Exchange showed. On Friday, FIIs bought shares worth Rs.1,417.40 crore on a net basis, according to market regulator SEBI. On Wall Street, stocks finished Monday's session little changed despite some spirited buying in the final hour on hopes of a near-term economic recovery. While the Dow Jones Industrial Average finished up by a modest 0.02%, the Nasdaq Composite index dipped 0.38% and the S&P 500 index ended down 0.1%. The Federal Reserve continued its treasury buyback program, completing the first of two quantitative easing moves for the week. The New York Fed purchased $7.50 billion worth of securities with maturity dates ranging from December of 2013 to April of 2016. Meanwhile, President Barack Obama is ramping up the economic stimulus spending, pledging to create over 600,000 jobs this summer. Obama made the announcement Monday morning, stating that he will accelerate the implementation of the $787 billion stimulus in the next 100 days. The Indian ADRs closed mixed. MTNL plunged 7.26%, HDFC Bank tumbled 3.1%, Sterlite fell 2.96%, ICICI Bank declined 4.02% and Wipro ended down 1.37%, but Infosys rose 0.5%, Reddy's Laboratories gained 0.35% and Satyam ended up 0.37%. In Asian trading, crude oil futures were last trading at $68.54 a barrel, up 0.66% ahead of the release of U.S. inventory data due from the U.S. Energy Administration Department on Wednesday. The rupee fell 44 paise or 0.93% to finish at Rs.47.55/56 against the dollar on Monday, weighed down by sluggish stock market and a firm dollar overseas. The Indian market ended Monday's session sharply lower after traders resorted to heavy profit taking due to concerns about stretched valuations amid subdued global markets. The broader market, represented by small-caps and mid-caps, which outperformed market heavyweights in recent sessions, was the worst hit. Selling was broad-based across the sectors with the exception of IT stocks. The BSE Sensex finished near the day's lows at 14,666, down 438 points or 2.90% from its previous close and the S&P CNX Nifty fell 157 points or 3.42% to 4,430.

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