RTTNews - The Indian market may open unchanged with a positive bias on Thursday after its recent losses. Asian stocks, which fell sharply yesterday on concerns about the Chinese economy are now trading mixed, as lower commodity prices dragged down materials producers, overshadowing better-than-expected earnings from several companies.
Back home, trading could be marked by hectic volatility due to futures expiration and earnings announcements due from several blue chip companies, including Mahindra & Mahindra, SAIL, DLF and GMR Infrastructure.
While foreign institutional investors (FIIs) sold shares worth Rs 168.79 crore on a net basis on Wednesday, domestic institutional investors made a net investment of Rs.126.23 crore, provisional data released by the BSE showed. On Tuesday, FIIs and domestic institutions bought shares worth Rs. 738.10 crore and 132.60 crore, respectively, according to SEBI.
On Wall Street, the major averages finished lower by modest margins overnight, experiencing another lackluster session in reaction to the day's slew of earnings and economic reports. On the economic front, the Commerce Department released a report showing that orders for transportation equipment declined sharply in June, contributing to a substantial decline in orders for manufactured durable goods.
Notwithstanding a recovery attempt in the final hour of trading, the Dow Jones Industrial Average ended down 0.29%, the Nasdaq Composite fell 0.81% and the S&P 500 index shed 0.46%.
Among the Indian ADRs, Sterlite Industries slumped 6.12%, MTNL tumbled 5.51%, Satyam Computers fell 3.81%, ICICI Bank declined 2.08%, Infosys eased 1.09%, HDFC Bank shed 0.18% and Wipro slipped 0.07%, but Reddy's Laboratories edged up 0.24%.
Crude oil futures for September delivery closed at a 12-day low of $63.35a barrel, down $3.88 or over 5% in New York trading on Wednesday after U.S. Energy Information Administration data revealed a surprisingly large build in crude oil inventories last week. Stockpiles surged 5.15 million barrels to 347.8 million in the week ended July 24, the biggest weekly increase since April.
The rupee weakened fell to a one-week low of Rs. 48.42/43 against the dollar, down 0.4 percent on Wednesday, weighed down by losses in the domestic stock market and a resurgent dollar overseas.
On Thursday, weak Asian cues dragged the Indian market down sharply. The BSE Sensex, which showed a modest gain in early trading, fell sharply to 14,888 in the afternoon before finishing at 15,173, down 158 points or 1.03% and the S&P CNX Nifty fell 51 points or 1.11% to 4,513. The BSE mid-cap index fell 0.98%, the broad-based BSE 500 index ended down 1.16% and the small-cap index shed 1.46%. Sector-wise, realty, consumer durable, metal and FMCG stocks bore the brunt of the selling, while IT and oil/gas stocks bucked the declining trend.
Stocks to Watch
ABG Shipyard acquired nearly 2 million shares of Great Offshore in separate bulk deals on the BSE and NSE on Wednesday at Rs.450 per share, thus raising its SEBI-determined open offer price to Rs.450, 11% more than rival Bharati Shipyard' s offer for the company, reports suggest.
While the export market for the IT sector is expected to grow a mere 4.-7 percent during 200-10, the domestic market may come to the aid of the IT-BPO industry with a projected 15-18 percent growth, industry body Nasscom said on Wednesday.
Metal stocks are likely to come under further selling pressure after earnings announcements from Tata Steel and Sterlite fell short of market expectations.
Reliance Power, which is yet to commence its operations, has posted a consolidated net profit of Rs 263 crore for the first quarter ended June compared to Rs.61 crore in the year-ago period.
Helped by higher bike sales and lower production costs, Hero Honda reported an 83% year-over-year rise in its June-quarter net profit.
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