RTTNews - The Indian market may open higher on Friday following an intraday pullback of 120 points on the Nifty and over 400 points on the BSE Sensex towards closing on Thursday. The unveiling of roadmap on economic reforms by the new government and encouraging global cues may add to the positive momentum, but intermittent profit taking is likely on concerns about stretched valuations. Investors fear that the market is rising too fast and a sharp correction is imminent if the government fails to deliver its promises. Additionally, weekend profit booking may also cap big gains.
Foreign institutional investors bought shares worth Rs.465.34 crore on a net basis on Thursday, while domestic funds sold shares worth Rs.530.20 crore, provisional data released by the BSE showed. According to market regulator SEBI data, foreign funds sold shares worth Rs.316.20 crore on a net basis on Wednesday. FIIs made a net investment of about $4 billion in May.
Overnight, the major U.S. averages saw good upside in late session trading and closed just off of their best levels of the day, helped by a highly encouraging report from the Labor Department that showed a decrease in first time jobless claims for the week ended May 30 and the first decrease in continuing claims in twenty weeks. The Dow Jones Industrial Average rose 0.86%, the Nasdaq Composite gained 1.32% and the S&P 500 index closed up 1.15%.
The Indian ADRs also closed mostly higher. ICICI Bank jumped 7.19%, MTNL rallied 4.15%, Reddy's Laboratories advanced 4.11%, HDFC Bank rose 3.06%, Wipro gained 1.48% and Infosys ended up 0.94%, but Sterlite slipped 0.78% and Satyam Computers plunged 15.38% on profit taking.
Crude oil futures settled at a seven-month high of $68.81 a barrel, up $2.69 or 4.1% in New York trading on Thursday, boosted by a forecast of a bigger rally by Goldman Sachs Group. Goldman Sachs raised its oil price forecast for the end of 2009 to $85 a barrel from $65 and introduced a new end-2010 forecast of $95. A better-than-expected report on jobless claims in the U.S. also reinforced hopes that the recession was easing.
The rupee weakened to Rs.47.20 against the dollar, down 0.3% from its previous close on Thursday, weighed down by demand for dollars from state-run banks.
On Thursday, the Indian market recouped all its early loss to close near the day's high after India's President Pratibha Patil revealed encouraging roadmap for the UPA government on economic policy. The BSE Sensex opened lower at 14,755 and fell to a low of 14,599 before bouncing back to end at 15,009, up 138 points or 0.93% from its previous close. . The S&P CNX Nifty rose 42 points or 0.93% to 4,573, the broad-based BSE 500 index advanced 1.38%, the small-cap index gained 2.20% and the mid-cap index added 2.26%. Metal stocks bore the brunt of the selling pressure due to weak commodity prices. Consumer durable and IT stocks also ended subdued.
For comments and feedback: contact email@example.com