Markets may notch marginal gains in opening trades following positive global cues. A broad rally in the US markets, lost steam during the final minutes of trading, but stocks still ended sharply higher on Wednesday as investors welcomed the latest plan to recapitalize European banks.
European Commission president Jose Manuel Barroso said on Wednesday that policymakers need to act immediately to resolve the long-running crisis. Barroso also said that banks that do not satisfy capital requirements should be barred from paying out dividends and bonuses.
Overnight, the Dow Jones industrial average rose 102.55 points, or 0.90%, to end at 11,518.85. The S&P's 500 Index gained 11.71 points, or 0.98%, to 1,207.25. The Nasdaq Composite Index surged 21.70 points, or 0.84%, to close at 2,604.73.
In Asia, Japan's Nikkei rose to a four-week high on Thursday on hopes that Europe will come up with actual measures to support Greece and shore up European banks. The index is currently at 8,839, up 1.2%. The Hang Seng index is up 1.4% while the Shanghai Composite index has gained marginally. The Singapore Nifty futures are also quiet at 5,121, up 6 points.
Back home, yesterday, the markets had rallied 3% on Wednesday led by rally in IT shares after Infosys earnings beat street expectations. The Nifty closed at 5,099, up 125 points and Sensex ended at 16,958, up 422 points.
According to Ashish Chaturmohta, IIFL Private Wealth, "Nifty future now finds important cap at 5160-5180 levels, sustaining above which on closing basis may gain further momentum towards its crucial levels of 5240 levels. On the downside, now 5050 holds as immediate support below which 4980 levels can be tested by the market."
Among individual stocks, Coal India is to be watched as the power ministry on Wednseday revealed that it has asked the Coal ministry to set aside coal for power projects before allowing e-auctions of the raw material.
Telecom stocks maybe in the limelight today as, in what could be a relief to Bharti Airtel, Vodafone and Idea Department of Telecommunications (DoT) has asked the Telecom Regulatory Authority of India (Trai) to reconsider its pricing recommendation for excess spectrum holders.
UB Group-promoted Kingfisher Airlines plans to use a part of money parked with its aircraft lessors as safety deposits for maintenance to repay debt. This stock should be watched closely.
The textiles units which borrowed funds from the government at concessional interest rates are likely to get relief as the Textiles Ministry is working on a plan to restructure these loans. This could lead to action in textile sector stocks in trade today.
Maruti Suzuki India’s production at its Manesar plant continues to be hit on account of labour unrest. This could see the stock come under some pressure today.
Other stocks likely to be in the limelight include, Dunlop India, DCB bank, Praj Industries, Asahi India and Kajaria Ceramics.
