Friday, the Indian market may open flat with a negative bias, mirroring the negative cues from the other Asian markets this morning. That said, higher U.S. index futures and the end of uncertainty over stress test results of U.S. banks might improve sentiment.

After the close of the regular trading session on Thursday, the U.S. bank regulators released the results of stress tests on 19 major U.S. banks. The results showed that 10 of the 19 banks tested need to raise a total of $74.6 billion. The banks involved in the exercise account for two-thirds of the assets and more than half the loans in the U.S. banking system.

Back home, net buying by foreign funds and resumption of buying by domestic funds may further help, but intermittent profit taking ahead of the weekend may cap big gains.

On Thursday, foreign funds bought shares worth Rs.388.33 crore on a net basis, according to provisional data on the stock exchanges. After being net sellers in the past 3-4 sessions, domestic financial institutions also bought shares worth Rs.42.40 crore.

The U.S. markets closed with sharp losses on Thursday, partly due to profit taking, as traders cashed in on the market's recent gains ahead of the release of the results of the government's stress tests of the nation's nineteen largest financial institutions. Though traders were not expecting any major surprises from the results of the stress tests, uncertainty about the reaction to the release scheduled after trading hours caused the sell-off.

Some additional selling pressure was generated by the release of the results of the Treasury Department's auction of $14 billion worth of 30-year bonds, which attracted below average demand amid record government debt sales. The Dow Jones Industrial Average edged down 1.2%, the Nasdaq Composite fell 2.44% and the S&P 500 index closed down 1.32%.

The Labor Department report showed that jobless claims fell to 601,000 from the previous week's revised figure of 635,000. Economists had been expecting jobless claims to edge up to 635,000 from the 631,000 originally reported for the previous week.

Meanwhile, the Indian ADRs closed mostly in the red. ICICI Bank tumbled 4.76%, HDFC Bank fell 4%, MTNL declined 3.48%, Wipro lost 3.49% and Infosys moved down 1.4%, but Sterlite and Reddy's Laboratories bucked the declining trend, rising a little more than 3% each.

Crude oil price closed at a near six-month high of $56.71 a barrel in New York trading on Thursday amid simmering hopes for an economic recovery that could pave way for a rebound in world oil consumption.

The rupee closed at a two-and-a-half-month high of 49.23/25 against the dollar on Thursday, buoyed by strong gains in the domestic stock market and gains in other Asian currencies.

The Indian market finished a choppy session higher on Thursday on strong global cues after leaked stress results in the United States improved investor confidence about the health of the U.S. banking sector. Trading was extremely volatile and second-line stocks outperformed the benchmarks. The BSE Sensex moved in a narrow range of 12,144-11,981 before finishing at 12,117, up 164 points or 1.37% and the S&P CNX Nifty rose 59 points or 1.62% to 3,684.

DLF may come under selling pressure on reports about stake selling by promoters to foreign and domestic institutional investors. Separately, reports suggest that the Bangalore city corporation, Bruhat Bangalore Mahanagara Palike (BBMP), has issued a public notice against investing in DLF's proposed complex named Westend Heights on Bannerghatta Road.

Jaiprakash Hydro Power may fall on reporting a net loss of Rs.25.52 crore for the fourth quarter ended March compared to a Rs.28.86 crore net profit in the same quarter last year.

Oil explorer ONGC and Cairn India could be in the spotlight amid reports that Cairn has sought permission from the government to relinquish its 30% stake in Cairn's Barmer fields in Rajasthan, as royalty and cess make project unviable.

Tata Motors may move as it prepares to raise Rs.5, 000 crore through a bond issue to refinance the remaining $2 billion (Rs.10, 000 crore) bridge loan it took to acquire Jaguar and Land Rover.

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