RTTNews - Upbeat corporate earnings and strong rollover of derivative positions into August combined with favorable global cues may help the Indian market extend its gains on Friday, although muted institutional buying may remain a concern.
On Thursday, while FIIs bought shares worth Rs.366.81 crore and domestic financial institutions sold shares worth Rs.286.67 crore, provisional data released by the BSE showed. According to SEBI, FIIs made net purchases worth Rs.139.10 crore on Wednesday, but domestic funds sold shares worth Rs.292.30 crore.
Currently, the markets across the Asia-Pacific region are trading sharply higher, with Japan's Nikkei average rising 1.4 percent to hit a 10-month high.
On Wall Street, stocks posted strong gains on Thursday, helped by stabilizing earnings and employment figures. A stronger- than- expected demand for the Treasury Department's $28 billion sale of seven-year notes also offered some support. Despite some profit taking in the final hour, the major averages closed at their best levels of the year. The Dow Jones Industrial Average finished up 0.92% , the Nasdaq Composite advanced 0.84% and the S&P 500 index rose 1.19%.
The Indian ADRs also closed sharply higher across the board. Sterlite Industries soared 5.33%, ICICI Bank jumped 4.47%, HDFC Bank rallied 3.93%, Satyam Computers advanced 2.18%, MTNL rose 1.86%, Wipro gained 1.77%, Infosys added 1.56% and Reddy's Laboratories edged up 0.9%.
Crude oil futures for September delivery bounced back on Thursday, ending nearly 6% higher at $66.94 a barrel, as traders bet a recent plunge was overdone. The one-day gain was the largest since April. In Asian trading on Friday, crude oil price rose further to $67.40 a barrel on increased optimism about the global economy.
The rupee ended higher at Rs.48.34/35 against the dollar, up by about seven paise on Thursday, as a bounce back in the domestic stock market raised fresh hopes of improved portfolio inflows. The weakness of the dollar in overseas markets also offered some support.
On Thursday, the Indian market recouped all its early loss and ended near the day's high, tracking a recovery in Asian stocks and a positive opening by the European markets and due to short covering on account of the expiry of monthly derivatives contracts. The BSE Sensex, which fell to a low of 15,065 in early trading, bounced back sharply to the day's high of 15,410 before finishing at 15,388, up 215 points or 1.41% from its previous close. Likewise, the S&P CNX Nifty rose 58 points or 1.28% to 4,571. The market breadth was fairly positive, as gainers outnumbered losers by 1506 to 1167 , with 83 stocks closing unchanged.
Stocks to Watch
Steel maker SAIL announced a 28% drop in its June-quarter net profit. According to reports, the company is likely to raise funds through a follow-on public offering this year to fund its expansion plans.
Welspun India reported better-than-expected net profit of Rs 33.2 crore in the June quarter compared to Rs 4.8 crore in the corresponding quarter last year.
Construction and infrastructure stocks could be in the spotlight after the government said that it will award road projects worth Rs 2,00000 crore in the next two years.
Oracle Financial Services Software's consolidate net profit for the first quarter ended June jumped 76% year-over-year.
Bhushan Steel reported a 30% year-over-year rise in its quarterly net profit. FMCG major Nestle's net profit for the June quarter rose 34% year-over-year to Rs. 162 crore.
Punj Lloyd is looking at listing its Singapore-based subsidiary Sembawang Engineers & Constructors, its chairman Atul Punj told a television channel.
The Supreme Court on Thursday turned down Reliance Natural Resource's appeal to take up the KG-gas dispute for an early final hearing on September 1.
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