RTTNews - After a rally triggered by massive short covering in the previous session, the Indian market may open on a cautious note Friday. Although signs of growth in Europe and the resumption of FII buying may help perk up sentiment, mixed Asian cues amid disappointing retail sales and jobs reports from the U.S. point towards a choppy trend for the day.

Weekend profit taking and concerns about monsoon rains may also weigh on sentiment. FIIs bought shares worth Rs.630.94 crore on a net basis on Thursday, provisional data released by the BSE showed.

On Wall Street, stocks managed to finish on the upside for the second straight session, even as largely disappointing retail sales and jobs reports contributed to some uncertainty in the markets. After trading choppily over the course of the day, the major U.S. averages closed on a positive note helped by late buying on the back of strong demand for the Treasury Department's US$15 billion sale of thirty-year bonds. The Dow Jones Industrial Average finished up 0.39%, the Nasdaq Composite rose 0.53% and the S&P 500 index edged up 0.69%.

The Indian ADRs also closed mostly higher. Sterlite Industries and ICICI Bank rallied over 4% each, Satyam Computers advanced 2.94%, HDFC Bank rose 2.01%, MTNL gained 1.48% and Wipro added 0.9%, but Infosys edged down 0.37% and Reddy's Laboratories slipped 0.06%.

Crude oil finished modestly higher on Thursday after better-than-expected results from U.S. retail giant Wal Mart and a strong showing of the German and French economies in the second quarter, reinforced hopes for an economic recovery and outlook for global energy demand. A weaker dollar also improved oil's hedge value. After settling at $70.52 a barrel, up 36 cents in New York trading on Thursday, crude oil rose further towards $71 a barrel in Asian trading this morning.

The rupee closed stronger at Rs. 48.095/105 against the dollar on Thursday after a substantial recovery in the domestic market on the back of robust manufacturing growth raised hopes for more portfolio inflows.

On Thursday, better-than-expected IIP report, aggressive tax reform proposals unveiled as part of a new direct tax code by finance minister Pranab Mukherjee and comments from the U.S. Federal Reserve that the world's largest economy is leveling out, lifted the Indian market sharply higher after recent losses. The BSE Sensex finished at 15,518, up nearly 500 points or 3.32% and the S&P CNX Nifty rose 147 points or 3.31% to 4,605. The broader market outperformed large-caps, with the BSE small-cap index jumping 4.1% and the mid-cap index by 3.59%.

Stocks to Watch

Colgate-Palmolive announced an interim dividend of Rs 8 per share for FY10.

IndusInd Bank said on Thursday that it concluded a Rs 480 crore institutional share placement offering.

Suzlon Energy said that it has received shareholder nod to raise Rs.5,000 crore through the issue of shares/FCCBs/GDRs.

Britannia Industries is likely to seek enhancing of its borrowing limit to Rs 2,000 crore to chase acquisition opportunities, reports suggest.

Aditya Birla Nuvo is in discussions talks with global private equity players Blackstone, Carlyle and KKR to sell shareholding in its proposed financial services holding company, reports said.

For comments and feedback: contact editorial@rttnews.com