Market to track Asian recovery

The market is expected to edge higher following a recovery in the Asian markets, which suffered a heavy fall on Thursday. Asian stocks rebounded on Friday, with investors returning to battered stocks like Canon as global markets took worries about blistering Chinese growth and a possible Chinese interest rate rise in their stride. China's economy grew at an 11.1% annual pace in the first quarter.

Concern about overheating had spooked markets in advance of Thursday's data, but there was no repeat of the global equity sell-off seen in late-February so Asian bourses rallied. China’s Shanghai Composite Index was up nearly 3%. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were up by between 0.4 - 1.6%.

Overnight gains in US stocks also aided the recovery in Asian stocks on Friday. The Dow managed to eke out a small gain and close at a record high for the second day, aided by strong profits from a few healthcare companies. It gained 4.79 points, or 0.04%, to end at a record 12,808.63. But the Standard & Poor's 500 Index shed 1.77 points, or 0.12%, to finish at 1,470.73. The Nasdaq Composite Index fell 5.15 points, or 0.21%, to close at 2,505.35

Wirpo has just now announced a surge in Q4 March 2007 net profit. The net profit as per US GAAP surged 44% to Rs 861 crore from Rs 597 crore in the March 2006 quarter.

Other important March 2007 quarter results due today are Satyam Computer and Gujarat Ambuja Cements (GACL). Stock-specific buying is expected in the near-term, especially during the ongoing earnings season.

The key data due today is that on weekly inflation. India's wholesale price inflation rate is expected at 5.79% for the 12 months to 7 April 2007, higher than an annual rise of 5.74% a week earlier. The annual rate hit 6.69% on 27 January 2007, its highest in more than two years, but has moderated after the Reserve Bank of India (RBI) tightened policy and the government cut duties on a range of items to rein in prices.

India's annual June-September monsoon rains are likely to be 95% of the long-term average, the weather office said on Thursday, PS Goyal, a top Met Department official, told a news conference on Thursday.

FIIs stepped up buying after Infosys gave a strong guidance for FY 2008 in dollar terms, putting to rest concerns about the impact of a slowdown in the US on India's IT sector. Their net inflow in three trading sessions between Monday to Wednesday totaled Rs 2076.90 crore. Their inflow for April 2007, till Wednesday 18 April, totaled Rs 4444.40 crore.

As per provisional figures, FIIs were net sellers to the tune of Rs 229 crore on Thursday (19 April). Domestic institutional investors were net buyers to the tune of Rs 274 crore on Thursday.

Commerce Minister Minister Kamal Nath said on Thursday all service exports would be exempted from service tax. Announcing the annual supplement of the Foreign Trade Policy, Nath said the export target of $125 billion for 2006-07 had been met and the government hoped to achieve $160 billion in the current financial year.