RTTNews - The Indian market may open higher on Friday on the back of favorable monsoon reports from across the country, positive news flow on disinvestment in state run companies NHPC and IOC and positive global cues. That said, weekend profit taking may restrict gains and cause volatility.
According to preliminary results announced thus far, margins of many Indian companies improved considerably in the first quarter despite slower revenue growth. On Wednesday, FIIs bought a net Rs. 10,310 million worth of shares, market regulator SEBI data showed.
Overnight, the major U.S. averages continued their positive momentum despite largely mixed economic and earnings news. On the economic front, while initial jobless claims fell more than expected, a report from Federal Reserve bank of Philadelphia showed a greater-than-expected fall in the index of manufacturing activity in the Mid-Atlantic region. Meanwhile, data on home builder confidence for July turned out to be a positive for the market.
On the earnings front, JP Morgan Chase reported second-quarter net income that blew away Wall Street estimates, but Xilinx, Cintas,Harley Davidson and Marriott International (MAR) offered a mixed bag of results. The Dow Jones Industrial Average closed up 1.11%, the Nasdaq Composite rose 1.19% and the S&P 500 index ended up 0.86%.
The Indian ADRs closed mixed. Satyam Computers rallied 5.4%, Wipro advanced 3.77%, MTNL rose 1.03% and Infosys added 0.78%, but Sterlite plunged 13.45%, ICICI Bank fell 1.51%, Reddy's Laboratories edged down 0.69% and HDFC Bank slipped 0.52%.
Crude oil futures rose on Thursday after a better-than-expected employment report in the U. S. and data showing strong economic growth in China improved expectations for energy demand. After finishing up 48 cents at $62.02 a barrel in New York trading on Thursday, crude oil for August delivery was last trading at $61.58 a barrel in Asian trading, down 44 cents on profit taking after a recent surge that was sparked by hopes of an early rebound in the world's largest economy.
The Indian rupee ended down three paise at Rs.48.66/68 against the dollar on Thursday amid a lackluster trading in the stock market and demand for dollars from banks and companies.
On Thursday, the Indian market ended a volatile session flat amid profit taking and concerns about monsoon. The BSE Sensex moved in a range of 14,493- 14,170 before finishing at 14,250, down 3 points or a mere 0.02% from its previous close. Likewise, the S&P CNX Nifty also closed mostly unchanged at 4,231 compared to its previous close of 4,233.
However, the broad-based BSE 500 index rose 0.13%, the mid-cap index gained 0.24% and the small-cap index added 0.39%. On the BSE, gainers outnumbered losers by 1465 to 1131 and auto, oil/gas and consumer durable stocks bucked the subdued trend to end sharply higher.
In corporate news, the government is likely to support Reliance Industries, when the gas-dispute between the Ambani brothers resumes in the Supreme Court on Monday, reports suggest.
State-owned BHEL will invest Rs.5,803 crore to double its power plant equipment manufacturing capacity by December 2011, Arun Yadav, the minister of state for heavy industries and public enterprises said in the Lok Sabha on Thursday.
Exide Industries reported a 49% year-over-year rise in its June-quarter net profit.
Infosys and HCL may come under selling pressure on reports that BT has decided to take back at least 2,000 call centre services jobs from India back to Britain. TCS could be in focus ahead of the announcement of its quarterly results later in the day.
Tata Motors may see some activity, as Ratan Tata hands over the keys of the Nano to its first owner in Mumbai on Friday.
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