A rally in global stocks is likely to take the Sensex higher in Friday's trading session. A positive opening may await the Indian markets even as early on Thursday, the European Central Bank announced a series of policy measures aimed at raising liquidity in European banks, easing concerns that an escalating debt crisis could trigger the collapse of European banks. The Singapore Nifty futures are at 4,916, up 53 points.
Overnight, US stocks rallied for a third straight day on Thursday, as investors turned optimistic, following the European Central Bank's latest policy measures aimed at boosting liquidity in the European banking system. The Dow Jones industrial average jumped 183 points, or 1.7%, at 11,123, the S&P 500 added 21 points, or 1.8%, at 1,165, and the tech-heavy Nasdaq composite rose 46 points, or 1.9%, at 2,507.
In Asia, the Nikkei stock average climbed in morning trades, retaking the 8,600 level for the first time since September 30 and on track for its second day of gains on hopes that a plan to support Europe's financial sector is making progress. The index is at 8,619, up 1% while the Hang Seng is at 17,685, up 3%.
Back home, technical analysts peg the support for the Nifty at 4,720 – 4,682 and suggest that it will face resistance at 4,910 – 4,950 levels. On Wednesday, the markets had a blow-hot blow-cold time through the day before signing off on the lower side as Moody's downgrading of Italy and follow-up selling on banking counters extinguished any hopes of a pullback post the carnage of the previous two sessions. The protracted war between the bulls and bears saw the Sensex oscillating in a range of around 300 points before ending at 15,792, weaker by 72 points and the Nifty ended at 4751, down 20 points. The broader markets fared worse, with the midcap index midcap losing 62 points or 1% at 5874 and the smallcap index losing 54 points at 6649. The markets remained shut on Thursday on account of a public holiday.
Among individual stocks, India Infoline could be in focus again today, after the company announced that the US private equity giant Carlyle Group has bought a 9%stake in the company from the secondary market for an undisclosed amount.
JSW Steel, which had cut production to 30% of installed capacity at its Karnataka unit after the ban on mining and sale of iron ore, is optimistic of restoring normal output by the end of this month. This could bring the stock in limelight at the bourses today.
ICICI Bank and Axis Bank could be in focus after their financial position got a thumbs from rating agencies Moody’s and Fitch, respectively.
Karuturi Global Ltd could be in the buzz today after the Indian food processor, that earns most of its revenues abroad, said it will replant its corn crop in Ethiopia after a flood destroyed its first planned harvest in the country.
Bahrain-based telecom firm Menatelecom has awarded WiMAX managed services contracts to Tech Mahindra and Huawei Technologies for the year 2012-13. However, the size of the deal has not been disclosed. This stock should be watched out for.
Investors should also closely watch Ultratech Cement, Tata Chemicals and Reliance Industries.