RTTNews - Favorable Asian cues may help the Indian market open higher on Thursday morning after a sharp correction in the past three sessions. Asian stocks reversed their early losses and are currently trading in positive terrain.
China's Shanghai Composite index is up 3.5% after a top securities regulator said late on Wednesday that the regulator would do its best to promote the steady development of the equity market.
That said, in the absence of any positive triggers and due to the subdued sentiment across the globe, trading may be range bound on alternate bouts of buying and selling. Cues from the European markets may influence market movement later in the day.
FIIs have been net sellers for the past few sessions. On Wednesday, they have sold shares worth Rs.688.31 crore on a net basis, provisional data released by the BSE showed.
On Wall Street, a late session sell-off resulted in a lower close for stocks on Wednesday. The Federal Reserve released the minutes of its August meeting, indicating that the members of the Federal Open Market Committee are more confident that the economic downturn is ending and that growth is likely to resume in the second half of the year. According to a release from the Commerce Department, factory orders increased by less than economists had been expecting in July.
Separately, data released by Automatic Data Processing, Inc. showed that non-farm private employment fell by more than economists had been anticipating in August, although the loss of jobs still marked the smallest drop in employment since September of 2008. The Dow closed down 0.32%, the Nasdaq Composite fell 0.09% and the S&P 500 gave off 0.33%.
However, the Indian ADRs closed mixed. Sterlite Industries shed 0.77%, MTNL moved down 0.53% and Wipro fell 1.53%, but Satyam Computer Services advanced nearly 2%, HDFC Bank roe 1%, Infosys gained 0.7%, ICICI Bank added 0.55% and Reddy's Laboratories edged up 0.32%.
After a choppy session, crude oil prices finished unchanged at $68.05 a barrel on Wednesday, as data from the U.S. Energy Administration revealed that inventories fell last week, but not as much as expected. In Asian trading on Thursday, crude oil prices rose modestly but stayed below $69 a barrel.
The rupee fell to as low as 49.21 before ending stronger at Rs.48.96/97 against the dollar, up 0.2% on Wednesday, helped by the dollar' s drop against other major currencies and some dollar selling above the 49 mark.
In corporate news, Thermax said its water and waste solutions division has bagged orders for municipal sewage treatment plants worth Rs 155 crore.
Market regulator SEBI has granted the MCX Stock Exchange (MCX-SX) one more year to complete the exchange's disinvestment process. MCX-SX is promoted by Financial Technologies.
Ashok Leyland reported a modest 0.7 percent drop in commercial vehicle sales to 4,784 units in August from 4,819 units sold in the year-ago month.
Stelite Industries could be in focus after Shanghai copper prices rose almost 1 percent on Thursday.
Realty stocks may witness some buying on reports that property prices in key regions like Delhi and Mumbai have moved up by 10-15% in recent times.
Steel producers, including SAIL and Ispat Industries, have increased flat product prices by Rs.1,500 a tonne, while Tata Steel has increased rates of HR coils by about 3-4 percent, reports suggest.
Bharti Airtel expects to launch 3G services by October 2010.
On Wednesday, the Indian market swung between positive and negative terrain before closing lower for the third straight session. The BSE Sensex moved in a range of 15,628-15,393 before finishing at 15,467, down 84 points or 0.54% from its previous close and the S&P CNX Nifty fell 17 points or 0.37% to 4,608.
Sector-wise, realty, auto, capital goods, power and banking stocks underperformed the broader market, dragging the benchmark indexes lower.
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