Firmness to prevail

Tame US inflation data, fall in oil price to one-year low and news that US Senate had approved the Indo-US nuclear deal would trigger firm opening on the bourses. However, the upside on the bourses may be capped by profit taking with the Sensex hitting a string of record highs over the past few days.

In the near term, the market would take cue from as to what extent the ruling government is able to pass some of the financial sector reforms. The winter session will debate, among other things, the Banking Regulation (Amendment) Bill. The Bill proposes to increase the voting rights of foreign stakeholders in private banks, which is capped at 10% now. However, the Left parties are opposed to amendment to the Banking Regulation Act, fearing that increase in voting rights in private sector banks will lead to a takeover of these banks by foreign entities.

US crude fell 13 cents to $56.13 a barrel after plumbing a low of $55.99, following a $2.50 drop on Thursday as swelling US crude stockpiles and forecasts of a mild winter in the world's top consumer weighed on the market.

US Senate on Thursday approved the Indo-US nuclear deal. The deal now needs to be voted jointly by the two houses of the US Congress after they reconcile the separate legislations they have approved, followed by approvals from the International Atomic Energy Agency and the 45-nation Nuclear Suppliers Group. The nuclear deal has become symbolic of the new friendship between the two countries. The deal is critical for India to help it allow buy US nuclear fuel and equipment to boost its nuclear programme and meet its soaring energy needs.

US stocks rose for a fifth straight day on Thursday as investors bet that a slide in crude oil prices and tamer consumer price data would prompt the Federal Reserve to cut interest rates starting sometime next year. The blue-chip Dow average achieved its longest winning streak since August, rising 54.11 points, or 0.44 percent, to end at a record 12,305.82. The Standard & Poor's 500 Index gained 3.19 points, or 0.23 percent, to finish at 1,399.76, and during the session it jumped to a six-year intraday peak of 1,403.76.

Most Asian markets were in the green on Friday. Key benchmark indices in Hong Kong, South Korea, Singapore and Taiwan were up by between 0.14% to 0.3%. Japan’s Nikkei was down 0.2%.

As per provisional data, FIIs were net sellers for the second day in a row on Thursday. FIIs were net sellers to the tune of Rs 33.56 crore on Thursday. Their provisional outflow was Rs 84 crore on Wednesday.