Stronger-than-expected Q3 results from Reliance Industries (RIL) and falling global crude oil prices will trigger a firm opening on the bourses. However, subdued Asian markets may cap gains for the day.
The corporate results announced so far are strong. Results from IT and cement sector have been robust. A number of firms are yet to unveil their results, which will dictate the near-term trend on the bourses. The major result scheduled today is that of Satyam Computer Services.
After trading hours on Thursday, RIL reported 57.6% surge in net profit in December 2006 quarter to Rs 2799 crore from Rs 1776 crore, much ahead of market expectations. Net sales rose 45.7% to Rs 26472 crore from Rs 18168 crore.
FIIs have resumed buying after their recent heavy sales, which had caused a steep market fall recently. FIIs were net buyers to the tune of Rs 91.20 crore on Wednesday (17 January 2007). FIIs were net buyers in four out of five trading sessions from 11 January to 17 January.
As per provisional data, FIIs were net buyers to the tune of Rs 155 crore on Thursday 18 January. They were net buyers of Rs 678 crore in index-based futures on 18 January. They were net buyers to the tune of Rs 111 crore in individual stock futures that day.
Asian markets were in the red on Friday. Key benchmark indices in Hong Kong, Japan, South Korea and Taiwan were down between 0.12 - 1.7%.
US stock indices ended lower on Thursday, after a conservative forecast from Apple sparked worries about the health of the technology sector. The Dow Jones industrial average ended the day down 9.22 points, or 0.07%, at 12,567.93. The Standard & Poor's 500 Index fell 4.25 points, or 0.30%, to finish at 1,426.37, while the Nasdaq Composite Index dropped 36.21 points, or 1.46%, to close at 2,443.21.
US crude oil futures for February delivery touched $49.90 a barrel, the lowest since May 2005, and settled down $1.76 at $50.48 a barrel on the New York Mercantile Exchange. The price of NYMEX crude oil has tumbled 36 percent from a record peak of $78.40 struck last July.