Market may correct on profit selling

Shares may correct on profit booking as crude oil prices crossed $77 mark. Spike in oil prices raises India's import bill as the country imports majority of its crude requirements.

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 5.50 points at the opening bell.

Overseas, Asian shares were trading higher, tracking Wall Street's advance as oil prices traded higher after touching multi-year highs overnight.

In US, the broader stock market rallied as sharp gains in energy, financials and technology stocks propelled the main benchmarks firmly higher.

On the data front, US wholesale prices rose a scant 0.1% in April to mark the smallest gain since the end of 2017, perhaps a sign inflationary pressures are leveling off after a prolonged upsurge. The 12-month rate of wholesale inflation slipped to 2.6% from 3%. The so-called core rate of wholesale inflation also increased 0.1%. The core rate is a closely watched category that excludes food, energy and retail-trade margins. The yearly rate of core inflation slipped to 2.5% from 2.9%.

Meanwhile, the US Energy Information Administration reported Wednesday that crude supplies fell by 2.2 million barrels for the week ended 4 May 2018. The decline followed back-to-back weekly increases.

Oil prices continued their move higher after touching multiyear highs overnight as investors digested the impact renewed US sanctions on Iran would have on oil supplies.

In the global commodities markets, Brent for July 2018 settlement was up 50 cents at $77.71 a barrel. The contract jumped $2.36 a barrel or 3.15% to settle at $77.21 a barrel during the previous trading session.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 704.03 crore yesterday, 9 May 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 664.92 crore yesterday, 9 May 2018, as per provisional data.

Among corporate news, Adani Enterprises, Asian Paints, Nestle India, Tata Communications, Titan Company, Union Bank of India and Zee Entertainment Enterprises will announce January-March 2018 quarterly results today, 10 May 2018.

Key benchmark indices logged modest gains yesterday, 9 May 2018, on steady buying in index pivotals. The barometer index, the S&P BSE Sensex, rose 103.03 points or 0.29% to settle at 35,319.35. The Nifty 50 index rose 23.90 points or 0.22% to settle at 10,741.70.

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