 "Markets open firm; Budget, F&O expiry key")
Finance Minister P. Chidambaram will present one of the most highly anticipated Indian budgets of recent years, a blueprint for austerity that forms the centerpiece of India's efforts to stave off a damaging credit ratings downgrade. The anouncments made today will be dictating the market moves in noon deals.
Experts expect a removal of the cap on foreign institutional investments in rupee-denominated corporate bonds, or at least in infrastructure bonds. They also see the Budget removing withholding tax on corporate bonds that have no restrictions on maturity or lock-in periods, or bring it down substantially
Overnight, U.S. stocks rallied for a second straight day on Wednesday as Federal Reserve Chairman Ben Bernanke reaffirmed his commitment to the Fed's stimulus efforts, while the euro climbed after solid demand at an auction of Italian government debt.
The Dow Jones industrial average was up 1.27 percent, at 14,076. The Standard & Poor's 500 Index .was up 1.27 percent, at 1,516. The Nasdaq Composite Index was up 1.04 percent, at 3,162.
In Asia, all the markets were in the green with Japan's Nikkei being the top gainer. The index gained 1.7 percent after a two-day losing run on Thursday after a well-bid Italian debt auction eased concerns that an inconclusive election could reignite the euro zone debt crisis.
Investors will be cautious ahead of the futures and options expiry as well.
BSE capital goods index has surged 1.2% at 9,621. PSU, realty and oil & gas indices are up 1% each. However, some weakness can be seen in the FMCG space as the BSE FMCG index has slipped marginally to 5,688.
ONGC has surged 2.6% at Rs 324 started supplying gas under direct marketing from its isolated fields in the K-G Basin to Steel Exchange India Limited at the rate of 10,000 standard cubic metres per day (scmd).
Larsen & Toubro, Coal India and Tata Motors advanced 1-2% each. Wipro, Bharti Airtel and Sterlite are up 1% each. Howeer, Maruti Suzuki has slipped 1.3% at Rs 1,391. Dr Reddy's is down 0.6% at Rs 1,743. ITC, Cipla and GAIL are in red as well.
BSE market breadth is positive. Out of 1,615stocks traded, 997 shares have advanced while 546 shares have declined.