RTTNews - The Indian market is likely to open higher on the back of strong global cues. Trading may remain volatile, as traders eye the fourth quarter GDP report. Net buying by foreign funds may add to positive sentiment, but intra-day profit taking cannot be ruled out.
According to reports, market wide rollover of derivative contracts from May to June was around 70% and the Nifty futures saw a lower rollover at around 58%. However, stock futures have picked up and saw 70% rollover into the new series.
Foreign institutional investors have been net buyers consistently, but domestic financial institutions have not taken active part in the current rally, data from the market regulator SEBI showed. While FIIs bought shares worth Rs.11, 384 crore on a net basis in the month until May 26, mutual funds bought shares worth only Rs.556.7 crore (up to May 25).
On Thursday, foreign funds bought shares worth Rs.427.97 crore on a net basis and domestic institutional investors bought shares worth Rs.197.68 crore, provisional data released by the stock exchanges showed.
After seeing significant weakness in the previous session, the major averages on Wall Street posted notable gains on Thursday, bolstered by the results of the $26.0 billion seven-year note auction conducted by the Treasury Department. The Dow Jones Industrial Average closed up 1.25%, the Nasdaq Composite gained 1.2%% and the S&P 500 index moved up 1.54%.
The Indian ADRs also closed mostly higher. ICICI Bank rallied 5.06%, Sterlite advanced 4.48%, Wipro gained 2.67%, Infosys added 2.36%, HDFC Bank rose 2.6%, Reddy's Laboratories moved up 1.25% and Satyam closed up 1.87%, but MTNL ended down 1.61%.
In economic news, while a commerce department report showed a slower than expected pace of new home sales in April, another government report showed that orders for durable goods increased by much more than expected in the month of April. In other news, General Motors (GM) bondholders have accepted an amended debt-for-equity offer that will help the auto giant restructure.
Crude oil futures settled above $65 per barrel for the first time since November on Thursday after an Energy Information report showed a larger-than-expected decline in weekly inventories. US crude stocks fell by 5.4 million barrels in the week to May 22, worse than analysts' expectations for a 700,000-barrel decline, as refiners ramped up output ahead of the summer. After closing at $65.08 a barrel, up $1.63 in New York trading on Thursday, crude oil is now trading at $64.8, down 0.41% in Asian trading.
The rupee settled up 10 paise at Rs.47.60/62 against the dollar on Thursday on hopes about increased portfolio inflows.
Despite mixed global cues, the Indian market continued its positive momentum on Thursday amid short covering on account of derivatives contracts expiry. The BSE Sensex closed at 14,296, up 186 points or 1.32% from its previous close and the S&P CNX Nifty rose 61 points or 1.43% to 4,337. Second-line stocks also closed with modest gains and the market breadth on the BSE was fairly positive. Advancers outnumbered decliners by 1737 to 1021. Stocks across the sectors, with the exception of IT and defensive FMCG and healthcare sectors, ended with respectable gains. Metal, public sector and banking stocks led the gainers.
NTPC could be in focus on reports that it is set to invest around Rs.10, 000 crore for two of its power plants in Andhra Pradesh and Tamil Nadu.
IT stocks TCS, Wipro and Infosys could be in the spotlight amid reports about Citigroup consolidating its outsourcing contracts with these companies.
Tata Motors could move after it unveiled its 'World Truck' range, developed jointly with Tata Daewoo Commercial Vehicles of South Korea.
Oil explorers and state-run marketing companies could be in focus after crude oil futures surged past $65 a barrel on Thursday to a fresh six-month high.
Tata Power may see some activity after it reported a 6% rise in its net profit for the financial year 2008-09.
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