Pre Market Watch

Indices are poised to open higher on Thursday mirroring global markets. Increased short covering of positions in the derivatives segment due to the futures and options expiry which boosted the market Wednesday, is likely to continue today.

In the derivatives segment, Nifty August futures ended at a 6-point premium to the spot, while open interest in the contract decreased to 1.59 crore.

Wednesday, Bombay Stock Exchange’s Sensex closed up 74 points or 0.5 per cent at 14,993.04. National Stock Exchange’s Nifty ended 39 points or 0.89 per cent higher at 4359.30.

Foreign institutional investors were net sellers of equity worth Rs 163.73 crore out of total traded value of Rs 10,766.56 crore Wednesday, as per provisional data on NSE.

Despite large FIIs selling in the current month, the fall in the Sensex has been less intense as compared with past occasions when the index had taken a beating even on much lower FII outflows.

GLOBAL MARKETS

US stocks rallied Wednesday led by technology and energy stocks.

Dow Jones Industrial Average was up 247 points or 1.9 per cent at 13,289.29. The Standard & Poor's 500 Index was up 31 points or 2.19 per cent at 1,463.76. The Nasdaq Composite Index was up 63 points or 2.5 per cent at 2,563.16.

In Japan, the benchmark Nikkei ended the morning session up 1.3 per cent or 206 points at 16,218.95, while the broader TOPIX Index gained 1.1 per cent or 18 points to 1,575.21.

Hong Kong’s Hang Seng surged 499 points or 2.17 per cent to 23,519.65. Singapore’s Straits Times added 37 points or 1.11 per cent to 3,371.78. In Seoul, the KOSPI advanced 19 points or 1.05 per cent to 1,845.45.

STOCKS TO WATCH

Bangalore-based Karuturi Networks has acquired Dutch floriculture major Sher Agencies for $ 69 million to become the biggest rose producer in the world. After the buyout, Karuturi’s topline will increase to Rs 400 crore from the current Rs 100 crore. This news will boost the company’s shares.

Ashok Leyland will see an upside on the company inking a deal with Nissan Motor Company to develop, manufacture and distribute light commercial vehicles. The companies will form three joint ventures for vehicles, powertrain manufacture and technology development.

Bajaj Auto announced the closure of its plant at Akurdi in Pune. The management has blamed the impact of government policies on capacity rationalisation that forced them to shut the facility. The facility shutdown may lead to a downside for the company’s shares.

Via ET