RTTNews - The Indian market may open higher on Friday on the back of favorable global cues amid hopes the U.S. economic downturn is nearing a bottom following fewer claims for jobless benefits and a slight rise in May retail sales. That said, the market may show a lackluster movement in early trading, as traders await the release of April industrial production data around noon. Foreign institutional investors bought shares worth Rs.786.57 crore on a net basis on Thursday and domestic institutional investors bought shares worth Rs. 558.14 crore, provisional data released by the BSE showed.
Aided by better-than-expected retails sales and jobless claims data, Wall Street ended Thursday's session with modest gains. The Dow Jones Industrial Average closed up 0.37%, the Nasdaq Composite rose 0.5% and the S&P 500 index ended up 0.61%.
The Indian ADRs closed mixed. MTNL jumped 6.74%, Sterlite rallied 5.85%, Wipro advanced 2.22%, HDFC Bank gained 2.03% and ICICI Bank added 0.13%, but Infosys edged down 0.4%, Reddy's Laboratories slipped 0.26% and Satyam Computers plunged 12.96% on profit taking after gaining sharply in the past two sessions.
Crude oil added to its best close since October on Thursday after the International Energy Agency raised its demand expectations for the year. The IEA increased its consumption outlook for the first time since August amid signs the recession is bottoming out. After ending at $72.68 a barrel, up $1.35 or 1.9% in New York trading on Thursday, crude oil was last trading mostly unchanged in Asian trading.
The rupee ended lower at Rs.47.60/61 against the dollar, down 0.80% on Thursday, weighed down by dollar demand from refiners.
The Indian market ended a volatile session modestly lower on Thursday after a 2-day rally took the benchmark BSE Sensex to an almost 12-month high in the previous session. Investors took some profits and ignored an intra-day recovery in European stocks and the higher U.S. index futures, as they looked forward to the April industrial output data scheduled to be released on Friday. The BSE Sensex finished at 15,411, down 55 points or 0.36% from its previous close and the S&P CNX Nifty showed volatility before finishing at 4,638, down 18 points or 0.38%.
Stocks to Watch
Satyam Computers is likely to see some profit taking following a 3-day rally after its board decided to keep 7,000-10,000 employees on virtual pool effective June, wherein they will be allowed time-off up to six months and offered only part of the regular salary. .
Sesa Goa could be in focus after it has acquired Goa-based Dempo Group's mining assets for Rs 1,750 crore in an all-cash and debt free deal
SAIL may move on reports that it could cut its planned expenditure on its expansion plans by 13% to improve its cash position.
Tata Tea may see some activity after it announced a strategic reorganization of its beverage businesses to focus on becoming a global leader in the fast growing $160 billion 'good for you' beverage market.
Telecom Stocks could be in the spotlight after the Cellular Operators' Association of India released new subscriber addition details for May.
Pantaloon Retail could move after its same-store sales in May grew the highest in the last seven months.
ONGC may be in focus on reports that it will raise Rs.27,000 crore over the next three to four year to fund its projects.
Engineers India may rise after it reported a near three-fold jump in its net profit for the fourth quarter ended March.
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