The market may extend recent gains on mostly higher Asian stocks. Asian stocks climbed Wednesday, spurred by broad gains for commodity firms and a sharp rise in energy shares after fresh tensions about Iran sparked a rally in oil prices and on speculation Chinese and European central bankers will ease monetary policy.

Key benchmark indices eked out small gains on Tuesday, 3 July 2012 as traders refrained from building large positions ahead of the beginning of the Q1 June 2012 earnings season next week. The BSE Sensex rose 26.73 points or 0.15% to settle at 17,425.71, its highest closing level since 29 June 2012.

Foreign institutional investors (FIIs) bought shares worth a net Rs 589.70 crore on Tuesday, 3 July 2012, as per provisional data from the stock exchanges.

US stocks extended rally for a third day on Tuesday as sharp gains in oil prices lifted energy shares and traders factored in increased expectations for central bank stimulus. Factory orders in the U.S. rose in May for the first time in three months. This week is a truncated trading week for US stock markets. US market remains closed today, 4 July 2012, for Independence Day holiday.