RTTNews - Thursday, the Indian market may open lower amid mixed global cues. The market is likely to see hectic volatility on alternate bouts of selling and short covering ahead of the expiry of May series derivative contracts on Thursday. Traders may also look forward to the release of inflation report scheduled to be released later in the day.
Currently, the major markets across the Asia-Pacific region are trading mixed, as rising U.S. Treasury yields and the likely bankruptcy of U.S. automaker General Motors Corp. dampened investor sentiment.
Overnight, stocks on Wall Street saw some heavy selling, as investors chose to take profits amid a mixed report from the housing market and the Treasury Department's auction of $35 billion worth of 5-year notes that attracted moderately strong demand. The major averages closed firmly in the red, just off their worst levels of the day. The Dow Jones Industrial Average fell 2.05%, the Nasdaq Composite shed 1.11% and the S&P 500 index closed down 1.9%.
However, the Indian ADRs closed mostly higher. MTNL surged up 10.97%, Sterlite rallied 6.73%, Wipro rose 0.72%, Infosys gained 0.62% and ICICI Bank added 0.21%, but Reddy's Laboratories slipped 1.09% and HDFC Bank ended down 0.78%.
Crude oil futures hit a six-month high near $64 a barrel in New York trading on Wednesday after Saudi Oil Minister Ali al-Naimi said the global economy had strengthened enough to cope with oil at $75 to $80 a barrel. The price rise is a function of optimism. Better things are coming in the future, Naimi told reporters in Vienna. In Asian trading, the commodity is now trading at $62.88 a barrel, down 0.90%
The rupee snapped a two-day fall on Wednesday, helped by a broader recovery in equities in the Asia-Pacific region. The currency settled at Rs.47.70 against the dollar compared to its previous close of Rs.47.88.
The Indian market finished Wednesday's session sharply higher, buoyed by the surge on Wall Street overnight on hopes of an economic rebound in the world's largest economy. Considerable amount of short covering ahead of derivatives contracts expiry on Thursday also helped the market end near the day's high. The BSE Sensex closed at 14,110, up 520 points or 3.83% from its previous close and the S&P CNX Nifty jumped 159 points or 3.87% to 4,276. Second-line stocks also surged ahead after a pause in the previous session. The broad-based BSE 500 index rallied 3.83%, the mid-cap index moved up 3.67% and the small-cap index advanced 3.37%.
Stocks to Watch
Mangalore Refinery and Petrochemicals could move on reports that it is close to striking a deal to buy crude oil from prolific Rajasthan fields.
Cairn India may be in focus after it reported a 84% plunge in its March quarter net profit on falling crude prices and higher costs.
BHEL may rise on announcing a 21% year-over-year rise in its net profit for the three months ended March.
Strides Arcolab may move on allotment of 6,200,000 warrants to its promoters at a price of Rs.91.15 per warrant.
Infrastructure stocks may be in the spotlight on reports that market regulator SEBI is considering a proposal to exempt infrastructure companies from a current rule to help these companies tap the corporate debt market.
Religare Enterprises may see some activity on reports that it is in talks with the world's second-largest reinsurer Swiss Re to launch a health insurance company in India.
State-run oil-marketing companies HPCL, BPCL and IOC could be in focus on reports that the government has evolved a unique subsidy-sharing formula to help these companies report profits for 2008-09.
Mahindra & Mahindra, Steel Authority of India, Larsen & Toubro, Dalmia Cement, Gokaldas Exports, IPCA Labs, Nagarjuna Constructions, Tata Chemicals and Tata Power could be in focus ahead of their results announcements for the full year 2008-09.
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