RTTNews - Thursday, the Indian market may open higher on favorable overseas cues. Further, robust June sales reported by car manufacturers, signs of a strong revival in monsoon rains and signals that the fuel price deregulation is very much on the government's agenda may add to the positive sentiment, but volatility may persist as investors choose to trim their positions ahead of the announcement of budget on Monday. Investors look forward to the inflation report and the Economic Survey, which will be tabled in the Parliament today.
Currently, the markets across the Asia-Pacific region are trading mostly higher driven by resource and mining stocks, as commodity prices rose on the back of positive cues from Wall Street.
Wall Street ended with modest gains Wednesday amid low volumes. While the data on manufacturing activity and pending home sales came in line with expectations and resulted in an early surge, weak employment and construction spending data hurt sentiment to an extent and wiped off some early gains. The Dow Jones Industrial Average closed up 0.68%, the Nasdaq Composite rose 0.58% and the S&P 500 index advanced 0.44%.
The Indian ADRs closed mostly higher. Satyam rallied 4.5%, ICICI Bank advanced 4.17%, Sterlite gained 1.85%, MTNL added 1.61%, Infosys rose 1.5%, Reddy's Laboratories edged up 1.06% and HDFC Bank closed up 0.96%, but Wipro ended down 0.85%.
Crude oil futures ended lower on Wednesday after bouncing above $71 a barrel, pressured by bigger than expected increases in gasoline and distillate inventories last week. Meanwhile, traders shrugged off a larger-than-forecast draw-down in crude stocks. The U.S. Department of Energy Administration said in its weekly report that American crude oil reserves fell 3.7 million barrels in the week ending June 26, the fourth weekly drop in a row. After settling down 58 cents or 0.83% at $69.31 a barrel in New York trading on Wednesday, crude oil is now trading almost unchanged at $69.30 in Asian trading.
The rupee recouped all its early loss and ended modestly higher at Rs.47.89/90 against the dollar on Wednesday, helped by a late recovery in the domestic stock market and the dollar' weakness against the euro in overseas markets.
On Wednesday, the Indian market ended a highly volatile session notably higher, as encouraging Markit Economics' Purchasing Managers' report on the manufacturing sector more than offset dismal May export data. While firm global cues helped in the recovery after a 2% loss in the previous session, continued profit taking ahead of the announcement of budget early next week restricted big gains.
The BSE Sensex finished at 14,645, up 152 points or 1.05% from its previous close and the S&P CNX Nifty rose 50 points or 1.16% to 4,341. On the BSE, the market breath was slightly negative, as decliners outnumbered advancers by 1339 to 1255, with 79 stocks closing unchanged.
Stocks to Watch
Reliance Industries could be in the spotlight on reports that it will move the Supreme Court against the judgment delivered by the Bombay High Court in KG -gas dispute.
State-owned oil-marketing companies HPCL, BPCL and IOC may rise after the government hiked pump prices of auto fuels, petrol and diesel to stem their losses.
Reliance Communications is looking at outsourcing the management of its optic fibre, broadband and fixed-line services in a bid to cut costs, reports suggest.
Areva T & D India has received an order from Hindalco for 2 x 220 KV Conversion Substations, media said. Hindalco is reportedly closing its Novelis plant in the UK to recast its capital expenditure plans.
Gitanjali Gems said that it would acquire a 70 % stake in MobileNXT Teleservices, a mobile retail chain, through its wholly-owned subsidiary Gitanjali Lifestyle.
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