RTTNews - Thursday, the Indian market is likely to open on a subdued note on the back of weak global cues. Additionally, net selling by FIIs in the previous session and concerns about monsoon rains and stretched valuations could keep underlying sentiment cautious. According to provisional data released by the BSE, net sales by FIIs totaled Rs.690.53 crore on Wednesday, while domestic institutional investors sold shares worth Rs.23.90 crore.
With unions of government-owned banks calling for a two-day strike starting Thursday, trading volumes could be muted ahead of the weekend. Inflation report, due later in the day, is likely to show a negative inflation rate for the eighth straight week.
After some bargain hunting in early trading, Asian stocks mostly slipped into the red on Thursday, with China's Shanghai Composite index going down by as much as 3%.
On Wall Street, disappointing data on the health of the service sector and the labor market generated some selling pressure and dragged the major averages down to a negative close on Wednesday, offsetting some of their recent gains. Meanwhile, the U.S. Commerce Department revealed that factory orders rose 0.4 percent in June, surprising economists, who had expected orders to drop 0.8 percent. The Dow Jones Industrial Average closed down 0.42%, the Nasdaq Composite slipped 0.91% and the S&P 500 index shed 0.29%.
The Indian ADRs closed mixed. Infosys fell 1.06%, MTN tumbled 3.63%, HDFC Bank slipped 0.51% and Reddy's Laboratories eased 1.16%, but ICICI Bank edged up 0.09%, Wipro rose 0.39%, Sterlite Industries advanced 1.51% and Satyam Computers closed up 2.59%.
Crude oil prices turned modestly higher on Wednesday as optimism over an economic revival outweighed Energy Information Administration data showing another increase in weekly supplies. After dipping to as low as $69.71 in early trading, light sweet crude oil closed at $71.97 per barrel, up 55 cents or 0.77% on the session. In Asian trading on Thursday, crude oil retreated nearly 1% to $71.30 a barrel.
The rupee ended stronger by 20 paise at Rs.47.52 against the dollar on Wednesday amid a fag-end rebound in the domestic stock market and dollar selling by exporters.
On Wednesday, buying at lower levels helped the Indian market recoup all its early loss and end modestly higher despite weak Asian cues. Consumer durable, oil/gas and IT stocks received good buying support, but considerable amount of profit taking in realty, auto and FMCG stocks restricted big gains. The BSE Sensex moved in a range of 15,973-15,695 before finishing at 15,904, up 73 points or 0.46% and the S&P CNX Nifty rose 14 points or 0.29% to 4,694. On the BSE, gainers outnumbered losers by 1613 to 1062, with 92 stocks closing unchanged.
Stocks to Watch
Lupin intends to increase its revenue from the U.S. by launching a new branded medicine every year for specialized therapeutic areas, reports suggest.
Larsen & Toubro has reportedly approached Tech Mahindra and market regulator seeking a waiver of the six-month lock-in period on its 12% shareholding in Mahindra Satyam. If SEBI approves L&T's request to exit from the stock, the company is likely to earn Rs.240 crore as capital gains on its total investment of around Rs.600 crore.
Anil Ambani-led Reliance Power on Wednesday reiterated that Reliance Industries' (RIL) capital expenditure plan of Rs.45,000 crore is exorbitant and asked the government to release the report of the Comptroller and Auditor General (CAG) of India on the audit of RIL's KG- D6 capital expenditure.
On the other hand, five more power plants from Delhi, Andhra Pradesh and Gujarat have sought allocation of 4.73 million standard cubic metres a day (mscmd) of gas from the KG basin D6 gas field.
Tata Teleservices Maharashtra (TTML) will launch its GSM-based cellular services in Mumbai on Thursday under the Tata DoCoMo brand.
State-run power equipment maker Bharat Heavy Electricals (BHEL) has bagged a Rs. 2,600 crore order from Jindal India Thermal Power.
Public sector lender Canara Bank slashed its interest rates on vehicle loans sanctioned on or after August 1, 2009.
State-run iron-ore producer NMDC plans to invest $5 billion in the next five years to expand capacity and enter the steel-making business, reports said.
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