RTTNews - Amid weakness in the Chinese and Hong Kong markets this morning, the Indian market is likely to open lower Friday morning.
However, extremely strong rollovers of future and option contracts into the September month series and high market turnover amid strong breadth witnessed in the past 2 sessions, suggest that consolidation is about to end and the market could edge up from hereon.
Market wide, the August month F&O contracts that expired yesterday witnessed rollovers of about 79% as against an average of 75% in the past few months.
As part of the new Foreign Trade Policy unveiled on Thursday, the government announced special incentives to encourage exporters expand and diversify their export markets, especially in the emerging markets of Africa, Latin America, Oceania and CIS countries.
Commerce and Industry Minister Anand Sharma announced the extension of income tax holiday for export units for one year and the continuance of the duty refund scheme till December 2010, along with enhanced assistance for the scheme for development of markets. He also announced duty-free capital goods imports to insulate exporters from global recession.
Following an initial retreat on the heels of relatively uneventful economic reports, stocks staged a steady recovery and finished with modest gains on Wall Street Thursday. A report from the commerce department revealed that second quarter GDP decreased at an annual rate of 1.0 percent in the second quarter, unchanged from the 1.0 percent decrease initially reported.
Separately, the number of people filing for first-time unemployment benefits edged down last week, according to a report released by the Labor Department, although jobless claims remain at a relatively high level. The Dow advanced 0.39%, the Nasdaq gained 0.16% and the S&P 500 index edged up 0.28%.
After showing a notable decline in early trading on Thursday, crude oil prices rallied following a downturn in the value of the U.S. dollar. Crude for October delivery ended the session up $1.06 at $72.49 a barrel, after falling to as low as $69.83 earlier in the day.
On Thursday, the Indian market ended a volatile session modestly up, as traders either squared off or rolled over their derivative positions on the August series expiry day. The 30-stock BSE Sensex finished at 15,781, up 11 points or a modest 0.07% and the S&P CNX Nifty closed at 4,688, up 0.16%.Broader market indexes also ended in the green, with the BSE mid-cap index closing 0.38% higher and the BSE small-cap index ending 0.42% up.
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