RTTNews - The Indian market is likely to open lower on Friday, tracking the mixed global cues. The U.S. stocks extended gains for the third straight session on Thursday, with financial stocks leading gains after U.S. manufacturing data and a rebound in Chinese stocks reassured investors. Meanwhile, Asian markets came off their early highs and are trading mixed in Friday's session.
The revival in monsoon rains may buoy the market, while the sustained selling by foreign funds may dampen investor sentiment.
On Wall Street, stocks saw strong gains on Thursday, helped by some upbeat news from the manufacturing sector that helped to offset a disappointing jobs report. The major averages all finished in positive territory by solid margins, extending their gains for a third straight session. The Dow closed up by 70.89 points or 0.8 percent at 9,350.05, the Nasdaq climbed by 19.98 points or 1 percent to 1,989.22 and the S&P 500 rose by 10.91 points or 1.1 percent to 1,007.37.
With traders doing some profit taking, the price of oil saw some weakness on Thursday after showing a substantial upward move in the previous session. Disappointing employment data inspired some traders to cash in on Wednesday's gains. After ending Wednesday's trading up nearly $3 a barrel, crude for October delivery ended the session down $0.92 at $72.91 a barrel on Thursday.
The Indian ADRs closed higher on Thursday. Infosys added 0.37%, Wipro gained 1.89%, Satyam Computers added 1.69%, HDFC Bank rose 2.50%, ICICI Bank gained 1.85% and MTNL advanced 1.84%. Also, Sterlite Industries rose 3.46%, Tata Motors advanced 1.66% and Dr. Reddy's Laboratories added 0.25%.
On Thursday, the Indian market witnessed a broad-based rally, buoyed by a rebound in Asia led by a pullback in China and positive cues from Europe and the U.S. Meanwhile, India's annual inflation rate for the week ended August 8 rose marginally to minus 1.53% from minus 1.74% in the previous week, government data showed on Thursday. Inflation in the year-ago period was 12.82%.
The BSE Sensex moved in a range of 15,145-14,928 before finishing at 15,012, up 203 points or 1.37% and the S&P CNX Nifty rose 59 points or 1.35% to 4,453.
The Indian rupee rose on Thursday with gains in the domestic share market boosting hopes for capital inflows, but dollar demand from oil refiners and importers prevented a further upside. The partially convertible rupee closed at 48.71/72 per dollar, 0.1% stronger than its Tuesday's close of 48.78/79.
Stocks to Watch
DLF has bagged a 350-acre plot for Rs 17.5 billion in Haryana for developing a recreation and leisure project, making it one of the costliest land deals in recent times.
JSW Steel has postponed its fresh capital expenditure plan by one year as part of its financial restructuring aimed at reducing the company's debt.
Bharti Airtel and South Africa's MTN Group have extended their exclusive discussions until September 30, 2009 aimed at merging their operations to create the world's third-largest mobile operator.
GMR Infrastructure has reportedly initiated plans for an 800-Mw coal-fired power plant on the eastern coast of India with an investment of Rs 32 billion.
The Godrej Group now plans to exit from its edible oil and tea business as part of a strategy to focus on the core business of beverages and confectionaries under its Godrej Hershey's joint venture.
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