Markets likely to open marginally positive; 10 stocks in focus

Markets are likely in make a marginally positive opening in trades today supported by Asian peers. The early indicator, SGX Nifty has inched up by 9 points at 7,790 levels.

On Thursday, markets suffered losses after likelihood of an interest rate hike by the US Federal Reserve in the month of June resurfaced. A win for the BJP in Assam failed to uplift the mood on the street as downfall in the global equities amid decline in the crude oil prices dampened sentiments.

"Nifty has been holding, first 7,700 and then 7,800 levels pretty strongly. Every time Nifty has traded towards the lower range, we have seen buying from institutions creeping in. Presently the leadership is missing in the markets, but PSU banks have stopped reacting negatively to bad results and provisions. They may actually create the wave of rally post this result season, as and when the MONSOON sets in. At around 7,800 levels we believe that investors should increase allocations to equity keeping an eye on Rains which is the next big trigger. We think crossing over 8k mark in Nifty will pave the way for the bigger rally from that level onwards," says Motilal Oswal, Chairman & MD, MOFSL.

Among global markets, Asian shares edged up on Friday but were on track for a weekly loss, while the dollar was poised for a winning week as comments from a key Federal Reserve official led to increased betting on the Fed hiking interest rates as early as next month.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2%, though still down 0.7% for the week. Japan's Nikkei stock index edged down 0.1% in early trade, up 1.3% for the week.

Wall Street closed down on Thursday with the Dow Jones industrial average and the S&P 500 both touching roughly two-month lows before paring losses.

Back home, ITC, IDBI Bank, Bank of India, Ashoka Buildcon, GVK Power & Infrastructure, Whirlpool of India will announce their Q4 earnings today.   

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 764.58 crore yesterday, as per provisional data released by the stock exchanges.

Besides, capital market regulator Securities and Exchange Board of India (Sebi) on Thursday tightened rules on issue of participatory notes (P-notes) to bring in more transparency and curb misuse of the investment route used by foreign investors not registered in India.

CORPORATE NEWS

ITC will be setting up eight new integrated food processing units by 2019, with investments in excess of Rs 4,000 crore.

SpiceJet, the country’s second-largest low-cost airline, reported a quarterly profit of Rs 73 crore for the January to March period, thanks to low fuel prices.

Moody’s Investors Service has revised its outlook on Adani Ports and Special Economic Zone (APSEZ), to “negative” from the earlier “stable”.

UK-based oil firm BP announced on Thursday its wholly owned subsidiary, Castrol, had sold 11.5 per cent stake from the 71 per cent it held in Castrol India, to domestic and international investors.

Sobha Ltd said its fourth quarter profits dropped 41.3 per cent to Rs 36.1 crore on higher provisioning for taxes, while revenue grew 9.66 per cent to Rs 558.5 crore on better sales of its properties.

Tata Communications has entered into a definitive agreement to sell 74% stake in its data centre business in India and Singapore to Singapore Technologies Telemedia (ST Telemedia), a strategic global investor focused on the communications, media and technology sectors.

Maruti Suzuki will undertake a service campaign for over 20,000 units of S Cross to replace a brake part.

DCB Bank, a new generation private sector bank, will be expanding its business in Chhattisgarh and Madhya Pradesh.


With Reuters input