RTTNews - While fairly positive global cues are likely to help the Indian market open higher on Friday, heavy selling by foreign institutional investors(FIIs)and news that India's monsoon rains were 68 percent below normal for the week ended June 24 may keep investor sentiment subdued ahead of the weekend.
While domestic institutional investors bought shares worth Rs.1,118.05 crore on a net basis on Thursday, FIIs sold shares worth Rs. 1,482.82 crore, data released by the BSE showed. FIIs sold shares worth Rs.601.30 crore on Wednesday, according to market regulator SEBI.
Shrugging off disheartening employment data, U.S. stocks closed higher on Thursday, thanks in part to strong demand for the Treasury Department's latest bond auction. Bargain hunting in a number of embattled sectors that have trended lower for much of the past month also helped the recovery. Separately, a report from the commerce department indicated that first quarter GDP contracted by a revised 5.5 percent compared to the 5.7 percent decrease that had been reported. The major averages rose over 2% each, with the Dow snapping a four session losing streak.
The Indian ADRs closed mostly higher. ICICI Bank jumped 5.16%, Sterlite, MTNL, Wipro, Reddy's Laboratories and HDFC Bank advanced over 3% each and Infosys rose 1.49%, but Satyam Computer fell 1.18%.
Crude oil futures rebounded sharply on Thursday amid more violence in Nigeria and a rally in gasoline futures on hopes of economic recovery. After settling higher at $70.23, up $1.56 a barrel in New York trading overnight, crude oil is now trading firm at $70.56 a barrel in Asian trading.
On Thursday, the Indian market ended a volatile session lower amid fears about stretched valuations and a delay in monsoon rains for the June-September season, which could hurt an already slowing gross economy. The BSE Sensex finished at 14,346, down 77 points or a modest 0.53%, while the S&P CNX Nifty fell sharply by 51 points or 1.19% to 4,242, the BSE mid-cap index slipped 0.20% and the small-cap index edged down 0.45%.
The market breadth on the BSE was slightly positive, as advancers outnumbered decliners by 1408 to 1216, with 79 stocks closing unchanged. Sector-wise, auto stocks bore the brunt of the selling pressure on fears a poor monsoon could hurt rural sales, followed by oil/gas, public sector and consumer durable stocks. Realty and banking stocks, on the other hand, showed small gains.
Stocks to Watch
State-run oil-marketing companies such as HPCL, BPCL and IOC may be in focus on reports the government could give these companies the freedom to price fuel prices within a certain band as long as crude oil price stays below $75 a barrel.
Tata Steel announced a 60% drop in its consolidated net profit for FY09. Tata Power signed an agreement with Tata Steel and Corus Steel B.V. for the construction of a 525-MW combined heat and power plant at Corus' Ijmuiden works in the Netherlands.
Pfizer revised its open offer price for increasing its stake in its Indian subsidiary Pfizer India by almost 23% from Rs 675 to Rs 830 per share.
Spanish wind turbine maker Gamesa and Vestas of Denmark may seal a deal with Suzlon Energy for acquiring its entire 61% stake in London-listed Hansen Transmissions, reports suggest.
IT stocks may find some support on expectations of a big leap in e-governance orders from the govt. after it appointed Infosys co-chairman Nandan Nilekani as chairman of the Unique Identification Authority of India in the rank of a cabinet minister.
For comments and feedback: contact firstname.lastname@example.org