Pre-market: Markets likely to edge higher

The Indian markets are likely to extend yesterday’s gains in trade today on the back of positive global and domestic cues. Overnight, the US stocks climbed to a five-month high. The Dow Jones industrial average gained 69.78 points, or 0.56 per cent, to 12,462.47. The Standard & Poor's 500 Index rose 11.38 points, or 0.89 per cent, to 1,292.08.

On the domestic front, the government formally eliminated restrictions on foreign investment in its single-brand retail sector. The move would change the retail landscape and boost investor sentiment, analysts say.

Back home, the Nifty convincingly broke the 4,800-barrier on Tuesday and closed on a firm note at 4,850, up 2.3 per cent. The next hurdle for the index lies at 4,880, above which the bulls could look to tighten their grip, analysts say. At 730 a-m Indian Standard Time, the SGX Nifty was trading flat at 4,875 levels, up 4 points.

Among individual stocks, retail sector stocks will be in focus today after the government notified 100 per cent FDI in single-brand retail.

A rub-off effect could also be seen on aviation sector stocks. Reports suggest that almost all ministries have given a go-ahead to the proposed 26 per cent FDI in the sector. The only hurdle, however, is to obtain exemption from the takeover code.

IndusInd Bank posted a growth of 35 per cent in net profit for the third quarter ended December 2011 at 206 crore. This could see the stock come back in limelight in trade today.

Also keep a tab on information technology stocks, especially Infosys that announces its December quarter results on Thursday.