Markets are likely to open marginally higher amid firm global cues but further upsides could be capped on caution ahead of the expiry of September derivative contracts later today. Further, selling by foreign funds would continue to weigh on market sentiment.
At 8:35AM, the early indicator SGX Nifty was trading 13 points higher at 8,024.
Foreign portfolio investors were net sellers to the tune of Rs 794 crore in the cash market on Wednesday, as per provisional stock exchange data.
Asian markets were trading higher tracking gains on Wall Street and the dollar firmed up against major currencies after better-than-expected economic data in the US.
Japanese shares firmed up with exporters shares in action after the yen weakened agains the dollar. The benchmark Nikkei was up 1.2%. Shanghai Composite was up 0.5% while shares in Hong Kong and Singapore were trading flat with negative bias. The Hang Seng and Straits Times were both down 0.1% each.
Major US indices ended higher on Wednesday with the S&P 500 rebounding after losses in the previous three sessions led by healthcare and biotechnology shares.
New home sales grew at a faster pace in August offsetting concerns that in the housing sector after disappointing existing home sales.
The Dow Jones ended up 156 points at 17,211.47 , the S&P 500 gained 16 points at 1,998.42 and Nasdaq rose 47 points at 4,555.
Stocks in focus
Jindal Steel and Power may see further pressure as the company is the most impacted by the SC verdict. Further, brokerages has also downgrade the stock post the verdict.
Hindalco will also be in focus as reports suggest that the penalty would not be as high compared to others.
Coal India will extend gains as the company would benefit the most from the SC verdict on coal blocks.
In the power sector Reliance Power, NTPC would firm up as as their coal block allocations has been spared.
PSU banks such as PNB will be under pressure on account of exposure to companies in the metal and power sectors.
Jaiprakash Power Ventures Ltd will be under pressure after the company said it has called off talks with Anil Ambani-led ADAG Group for sale of hydro assets.
In the primary market, Atishay Infotech and Aryaman Capital Markets, will come out with their initial share sale tomorrow to together raise up to Rs 8 crore and eventually get listed on BSE's platform for small and medium enterprises.
IT firm Atishay Infotech is looking to raise Rs 3.71 crore through public issue of 23.20 lakh shares for an average price of Rs 16 apiece.
Aryaman Capital Markets which is also launching its IPO on September 25, would issue as many as 35.90 lakh shares at a price of Rs 12 each, aggregating to an amount of Rs 4.30 crore.
