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Benchmark indices are likely to extend gains from previous day’s record highs as their Asian peers too have surged on strong overnight performance by US markets.
At 8:30AM, the early indicator SGX Nifty was up 55 points at 8,249.00.
FIIs were net buyers on Thursday to the tune of Rs 1,257.49 crore.
Asian markets are trading firm on positive cues from US and higher than expected corporate earnings. Nikkei has surged around 1.7% as Japanese government is going to approve targets for the $1.2 trillion Government Pension Investment Fund (GPIF) in order to increase the ratio of Japanese shares in its holding to 25% from current 12%. Hang Seng is up around 0.6% while Shanghai Composite has gained around 0.3%.
US markets rose sharply on better than expected third quarter economic data. Gross domestic product grew at a 3.5% annual rate in the third quarter while underlying trends of the rate of new applications for unemployment benefits hit its lowest level since May, 2000. Markets were also boosted by another round of strong earnings data from corporates. The Dow Jones gained around 1.3%, the S&P added 0.6% while Nasdaq gained 0.3%.
Stocks to watch
ITC, Mahindra and Mahindra and NMDC will be in focus ahead of the release of their second quarter earnings.
Bharti Airtel may come under pressure as its performance in the September quarter has been rather muted, as the African market continues to be a drag. Seasonally, the second quarter is known to be weak for the company, but the contraction in voice revenues and realisations has been far more pronounced.
Cement major ACC along with group firm and majority stakeholder Ambuja Cement will be in focus as their performance for the year's third quarter ending September (Q3) was driven by better realisations and was in line with the Street’s expectations though volume growth was lower than the expectation, while cost pressures continue.
IDFC, the private sector infrastructure finance company, is likely to be under pressure as it has posted a 14% drop in net profit to Rs 421 crore for the second quarter of the current financial year, due to a sharp increase in provisioning and operating expenses. The company has announced one share as a bonus against every share held.
