RTTNews - The Indian market is likely to open flat with a negative bias on Friday after disappointing economic data rendered the mood bearish on Wall Street and sent stock prices down on Thursday.
News that the DMK party has decided to support the UPA-led coalition from outside may keep investor sentiment subdued, although it doesn't pose a threat to the stability of the government. Besides, profit taking may continue on concerns about stretched valuations as the market saw a sharp run-up earlier this week.
Meanwhile, FIIs have turned sellers for the last two trading sessions after buying nearly $1 billion on Tuesday. On Wednesday, they sold shares worth Rs. 234.10 crore on a net basis, market regulator SEBI data showed. According to provisional data released by the stock exchanges, these funds sold Rs.2.14 crore on Thursday.
After mild losses in the previous session, stocks on Wall Street finished Thursday's session significantly lower. The major averages closed in firmly negative territory as trader optimism dampened following the release of another uninspiring jobs report from the U.S Labor Department for the week ended May 16th. The data showed that first time jobless claims slowed but continuing claims rose for yet another week, reaching a new historic high. Meanwhile, the Philadelphia Federal Reserve's business activity index for the first half of May showed improvement but rose by less than expected, further mitigating risk appetite. The Nasdaq Composite fell 1.89%, the Down Jones Industrial Average lost 1.54% and the S&P 500 index ended down 1.68%
The Indian ADRs ended mostly lower. Sterlite Industries tumbled 5.11%, Infosys fell 2.11%, Wipro declined 1.9%, Satyam shed 1.54%, ICICI Bank lost 1.3% and HDFC Bank slipped 0.5%, but MTNL jumped 8.17% and Reddy's Laboratories rose 1.24%.
Crude oil futures for July delivery settled lower at $61.05 a barrel, down 1.6% in New York trading on Thursday, as investors extended profit taking amid signs of further weakness in the U.S. job market. The manufacturing survey results of the Philadelphia Fed, showing a smaller-than-expected increase in the manufacturing index also kept prices under check. However, in Asian trading, crude oil is now trading firm at $61.55 a barrel, up 0.82%.
The rupee settled higher at Rs.47.34/36 against the dollar compared to its previous close of Rs. 47.47/48, supported by the dollar's weakness in the overseas markets and hopes of improved capital inflows.
The Indian market ended sharply lower on Thursday, as traders took profits in frontline stocks and bought under-valued smallcap stocks. Weak cues from the overseas market also kept the large-cap indexes under check. The BSE Sensex settled at 13,737, down 324 points or 2.31% from its previous close and the S&P CNX Nifty fell 60 points or 1.39% to 4,211. However, broader market indices on the BSE outperformed the benchmarks. While the broad-based BSE 500 index ended down 1.33%, the mid-cap index closed flat and the small-cap index moved up 2.58%. The market breadth was positive, led by smaller companies. Advancers outnumbered decliners by 2095 to 629, while 43 stocks closed unchanged.
Tata Motors could be in the spotlight on reports that it is raising Rs 4750 crore ($ 1 billion) through the external commercial borrowing route.
Dr. Reddy's Laboratories may move after the company said that its drug discovery operations in Hyderabad would be absorbed into Aurigene, a wholly owned independent subsidiary of the company, with effect from July 1.
Apollo Hospitals Enterprise may see some activity after the Enforcement Directorate (ED) sent a notice to the company on charges of possible Foreign Exchange Management Act (FEMA) violation.
Parsvnath Developers could be in focus after the company proposed to invest Rs.135 crore to develop an IT park in Gurgaon.
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