Markets may open higher on ECB move; RIL, Tata Motors in focus

Globally, equity markets have edged higher on ECB's launch of sovereign bond-buying programme.

Benchmark indices are likely to open higher tracking the firm trend in their Asian peers and the overnight gains on Wall Street. Globally, equity markets have edged higher on European Central Bank's launch of sovereign bond-buying programme.
 
At 8:23AM, the early indicator SGX Nifty was up 82 points at 8,868.
 
ECB has committed to purchase government bonds of Euro Zone countries worth 60 billion Euros ($69 billion) a month from March this year to September, 2016.  With commodity markets remaining soft and uncertain, it is likely the money will flow into equity markets with strong upsides, such as India.

 

Meanwhile, foreign institutional investors were net buyers in Indian equities worth Rs 593 crore on Thursday, as per provisional stock exchange data
 
Asian markets are trading higher boosted by the ECB move and the rebound in crude oil prices after Saudi Arabia announced that King Abdullah had died and his successor, Salman, moved quickly to name his own heir to rule the world's biggest oil exporter. Nikkei has gained around 0.8%, Hang Seng index is up 0.9% and Shanghai Composite index has gained around 0.6%
 
Overnight, Wall Street jumped 1.5% after ECB launched a bigger than expected stimulus package in its attempt to revive inflation in the Euro zone. Robust U.S. economic data added to gains on Wall Street. Dow Jones industrial average and the the S&P 500 rose 1.5% each, and the Nasdaq Composite added 1.8%.

 
Stocks to watch
 
Tata Motors will be in focus as on Thursday the company launched the Bolt, a hatchback, starting at Rs 4.64 lakh (ex-showroom, Mumbai). The company is pitting this car against segment leaders Maruti Suzuki Swift and Hyundai Grand i10.
 
Reliance Industries will be in focus after kicking off this year’s first benchmark issue of bonds on Thursday by raising $1 billion through a dollar bond issue. The funds would be used for its ongoing capital expenditure, RIL said in a statement.
 
Sesa Sterlite will be in focus after the government of Goa opened the minerals exploration sector, clearing 85 licences, including the ones of Sesa Sterlite. According to media reports, Sesa Sterlite has already received state clearance and has begun lease execution activities in a fourth of its 21 operational mines.

 
Cairn India may come under pressure after reporting a steep 53% fall in its third-quarter net profits.

Biocon may come under pressure after reporting sub-par Q3 results. The company reported a 13% drop in net profit for October-December quarter at Rs 91 crore.
 
Suzlon Energy on Friday announced it had signed a binding agreement with US-based private equity fund Centerbridge Partners to sell its German subsidiary, Senvion (earlier known as REpower), for euro 1 billion (Rs 7,200 crore), in an all-cash deal.
 
Dish TV India may witness some fresh buying after it reduced its net loss to Rs 2.9 crore in the December quarter from Rs 38.25 crore in the same quarter last year.