RTTNews - Short covering and value buying in battered index heavyweights may help the Indian market open on a positive note Thursday morning. Strong global cues cues amid higher commodity prices also suggest that a recovery is underway. Traders look forward to a report on wholesale prices, due for release around noon.

On Wall Street, the major averages recovered from early weakness and finished up by 0.7% each on Wednesday, largely driven by a report indicating a jump in oil demand. The U.S. Energy Information Administration said crude oil inventories decreased by 8.4 million barrels, while analysts expected to see an increase of about 1.1 million barrels for the week. At 343.6 million barrels, however, crude oil inventories remain above the upper boundary of the average range for this time of year.

Reacting to the report, crude oil soared to its best close in more than two months. After reaching as high as $72.80 in the day, light sweet crude for September settlement closed at $72.42 a barrel, up $3.23 or 4.67% on the session. In Asian trading on Thursday, crude oil was last trading down modestly at $72.35 a barrel due to profit taking.

The Indian ADRs closed mixed. Infosys, ICICI Bank, MTNL, Wipro and Reddy's Laboratories rose less than a percent each, but Sterlite Industries fell 3.35%, Satyam Computers shed 2.03% and HDFC Bank slipped 0.05%.

The forex market remained closed on Wednesday for a local holiday. On Tuesday, the partially convertible rupee ended at 48.79/80 against the dollar, up 16 paise or 0.4 per cent from Monday's close of 48.95/96.

On Wednesday, weak global cues, especially the sell-off in the Chinese market on valuation concerns and renewed concerns on the monsoon front pulled the Indian market sharply down after a recovery in the previous session. After moving in a range of 15,097-14,684, the BSE Sensex finished at 14,810, down 226 points or 1.50% and the S&P CNX Nifty fell 65 points or 1.45% to 4,394. Sector-wise, oil/gas, metal, auto and power stocks bore the brunt of the selling, while FMCG, consumer durable and capital good stocks closed with modest losses.

Stocks to Watch

Tata Chemicals said that it it had hiked its stake in Rallis India to 45.20 percent through acquisition of shares from various promoters at Rs.850 per share.

TCS bagged a multi-year deal from Avaya GlobalConnect for internal IT operations management.

The government is likely to dilute its stake in NMDC and REC through qualified institutional share placement by January, reports suggest.

Infosys Technologies has bid for 10-12 large government projects to increase its revenue from the domestic market, its CEO S Gopalakrishnan was reported to have said.

Sterlite Industries is learnt to have increased the cash component of its offer for acquiring bankrupt U.S. copper miner Asarco. The shares of Adani Power will be listed on the stock exchanges today.

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