Markets likely to extend gains; RIL, TCS, Axis Bank, Wipro in focus

Positive December trade deficit data is expected to add to the momentum generated by the surprise rate cut by RBI

Markets are likely to open marginally higher, despite the weak global cues,  as the positive December trade deficit data is expected to add to the momentum generated by the surprise 25 basis points cut in repo rate by RBI.
 
At 8:26AM, the early indicator SGX Nifty was up 45 points at 8,510.
 
Yesterday, the Sensex gained 729 points to record its highest single-day gain since May 18, 2009 led by financials on expectations that further easing of interest rates would help spur growth.
 

The trade deficit for the month of December decreased by 44% at $9.43 billion hitting a ten month low mainly on account of falling imports due to slump in crude prices.

 
Meanwhile, foreign institutional investors were net buyers in Indian equities worth Rs 1,738.24 crore on Thursday, as per provisional stock exchange data.
 
Asian markets have declined on the surprise move by Swiss National Bank revoking its commitment to keep its franc above 1.2 per euro and persisting weakness in the US markets. Nikkei has declined around 3%, Hang Seng index is down 0.6% while Shanghai Composite has gained against the trend and is up over 1% as traders in China expect more policy stimulus measures from authorities in the near term.
 
Overnight, US marktets closed lower for the fifth straigth session on concerns over global economic growth while weak US retail sales data and Swiss National Bank's move also weighed on the markets. Dow Jones Industrial Average fell 0.6%, S&P 500 lost 0.9% and Nasdaq Composite dropped 1.48%.

 
Stocks to watch
 
Reliance Industries will remain in focus in today's session ahead of the release of its quarterly results later today.
 
Axis Bank too will release the results for its third-quarter performance later today.
 
Wipro will be in focus ahead of the third quarter results to be release later today.
 
TCS may come under pressure on lower-than- expected third quarter results. TCS reported a net profit of Rs 5,444 crore (according to International Financial Reporting Standards), an increase of 5.1 per cent compared to the year-ago period. At Rs 24,501 crore, the revenue increased 15.1 per cent year-on-year. On a sequential basis, the net profit and revenue increased 2.9 per cent each

 
SpiceJet is in focus on media reports that Kalanithi Maran and his associates had decided to transfer the ownership and management control of the airline to former promoter Ajay Singh and a clutch of investors.