Pre-market: Firm start seen to Samvat 2071

Markets are likely to start the 'Muhurat' trading session to usher in the new year Samvat 2071 on a firm note

Markets are likely to start the customary 'Muhurat' trading session to usher in the new year Samvat 2071 on a firm note post the slew of reforms announced by the government. However, upside gains may be capped after both the benchmark indices ended higher in the previous four sessions.

At 6PM, the SGX Nifty was up 7 points at 8,040.

Foreign funds were net buyers in equities to the tune of Rs 7.54 crore on Wednesday, as per provisional stock exchange data.

Major Asian stock indices ended lower amid growth concerns even though mixed economic data from China failed to boost investor sentiment. The flash HSBC/Markit manufacturing purchasing managers' index (PMI) for China inched up to 50.4 from a final reading of 50.2 in September, slightly higher than analysts expectations of 50.3. However, level of factory output slipped to a five-month low of 50.7. Shares in Japan ended down 0.4% while China's Shanghai Composite ended down 1% and Hang Seng slipped 0.3%. However, Straits Times ended up 1%.

Stocks in Europe pared early losses to trade firm after surveys of both manufacturing and services in German were better than expected. The CAC-40 and DAX were trading with marginal gains while the FTSE was trading flat with negative bias.


Stocks to watch

Wipro will see some action after its revenue growth in the September quarter disappointed the Street. The company’s dollar revenues from IT (information technology) services grew 1.8 per cent sequentially to $1.77 billion, below analysts’ estimates.

Asian Paints may gain on plans to acquire 51% stake in Ethiopia-based Kadisco Paint through its Singapore-based subsidiary Berger International for an undisclosed sum.

Kansai Nerolac Paints amid robust Q2 earnings. The company reported 40.62% increase in standalone net profit at Rs 72.66 crore for the second quarter ended September 30. The company had reported net profit of Rs 51.67 crore in the July-September quarter of 2013-14 fiscal.

Kotak Mahindra Bank may extend gains after it reported 23% increase in its net profit on a consolidated basis to Rs 718 crore for the quarter ended September as compared to Rs 583 crore recorded during the same period of the previous year, mainly due to higher earnings from banking operations.

Sesa Sterlite may gain on reports that the Goa's state mines department has moved a file clearing ten mining leases. Goa accounts for a large chunk of the company's production.