Pre-market: FDI vote outcome can take markets higher

Global cues, however, could keep gains under check

Markets are likely to gain ground today after the UPA-led government was able to win the vote on foreign direct investment in retail after getting an approval in the Lok Sabha yesterday. The victory also raises expectations that the government would be able to push through reforms in the financial sector namely pension and insurance sectors.

However, mixed global cues could keep gains under check. According to technical analysts, the Nifty is likely to seek support around 5,890-5,884, while face resistance around 5,910-5,917.

Overnight, a volatile trading session ended with U.S. stocks mostly higher on Wednesday, even as Apple, the most valuable company in the United States, suffered its worst day of losses in almost four years.

The Dow Jones industrial average rose 82.71 points, or 0.64 percent. The Standard & Poor’s 500 Index gained 2.23 points. But the Nasdaq Composite Index fell 22.99 points, or 0.77 percent, to end at 2,973.70.

Asian shares were steady near 16-month highs on Thursday, supported by hopes that U.S. lawmakers will reach a compromise to avoid the so-called ‘fiscal cliff’ of year-end tax hikes and spending cuts which threaten to push the U.S. economy back into recession.

MSCI’s broadest index of Asia-Pacific shares outside Japan were little changed after scaling a 16-month high on Wednesday. At 700 Indian Standard Times, the SGX Nifty was up 13 points at 5,950.

STOCKS TO WATCH

Tata Power and Calcutta Electric Supply Corporation (CESC) have signed separate agreements with the Jharkhand government on Tuesday to take over the power distribution system in the steel city Jamshedpur and the state capital, Ranchi.

RIL on Wednesday said it has completed sale of its 25-per cent stake in an oil block in Yemen to Indonesia’s Medco Energi for around $90 million.

NTPC which had sought the state government intervention to direct Mahanadi Coalfields Ltd (MCL) for additional coal supply by rail to its Talcher power station, received a major jolt as the Coal India subsidiary has declined to give any commitment.

Shriram EPC consortium has bagged order worth $230 million for the supply and laying of basic sanitary systems in Basra, Iraq.