Pre-market: Markets likely to open firm on US Fed action

On the domestic front, markets will also react to the diesel price hike announced post market hours on Thursday

Markets are likely to make a gap up opening tracking strong global cues. Overnight, US stocks surged to multi-year highs on Thursday after the Federal Reserve announced an aggressive plan to stimulate the economy, encouraging investors to dive back into the market.

The Dow and the S&P 500 both closed at their highest levels since December 2007, while the Nasdaq ended at the highest since November 2000.

Asian shares rose to a four-month high on Friday while the dollar remained weak against other major currencies after the U.S. Federal Reserve announced an aggressive new stimulus to drive job creation in the U.S. economy. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9 percent. At 700 am Indian Standard Time, the SGX Nifty was trading at 5,545 up 99 points.

Back home, the Nifty is likely to face resistance around 5,445-5,450, while on the downside the index can seek support around 5,425-5,420, technical analysts say.

STOCKS TO WATCH

The government increased diesel prices by Rs 5 per litre, limited sale of subsidised domestic LPG to six per year and reduced excise on petrol by Rs 5.30 per litre to avoid a price increase. This news will bring the PSU OMCs and Auto shares in focus.

Two promoter entities of construction firm IRB Infrastructure Developers offloaded 1.2 crore shares of the company for more than Rs 147 crore through open market transactions.

Hero MotoCorp has roped in Italian two-wheeler design firm Engines Engineering to partner with it in bringing in next-generation product line-up.

Strides Arcolab Limited has received US FDA approval for its Polish Sterile facility located in Warswa, Poland.

Lupin announced that its subsidiary Lupin Pharmaceuticals Inc. has received final approval for its Escitalopram tablets from the United States Food and Drugs Administration.