Rally in US markets and firm Asian markets in current trades likely to generate optimism in the opening trades.
Rally in US markets after the Fed minutes indicated that the economy can avoid a recession, despite slower growth and rising unemployment. Positive opening in most of the Asian indices in ongoing trades may also help the local market advance further. However, investors should remain cautious on the back of high intra-day volatility. But, marginal increase in FII inflows can help the sentiment to remain positive. Among the key indices, the Nifty faces resistance at 5,500-6,300 levels and has a key support at 5,040 levels in the near-term. The Sensex has a likely support at 17,140 and may face resistance at 19,000.
Major US indices registered significant gains on Wednesday, after the Federal Reserve's minutes indicated that the economy can avoid a recession, despite slower growth, rising unemployment and more pricing pressures. While the Dow Jones flared up by 90 points at 12,427, the Nasdaq moved up by 21 points to close at 2,327.
Most of the Indian ADRs traded firm on the US bourses. HDFC Bank led the pack with gains of 1.20% while Infosys, Wipro, Satyam, Dr Reddy's, VSNL and MTNL gained over 0.50% each. However, Rediff, Tata Motors and ICICI Bank slipped over 1-2% each.
Oil prices reached another settlement high on Wednesday and closed above $101 a barrel as traders took the Federal Reserve's weak economic report as a signal that more interest rate cuts are coming. The Nymex light crude oil for March delivery gaining 73 cents to close at $100.74 a barrel. In the commodity space, the Comex gold for April delivery gained by $8 to settle at $937.80 an ounce.
Daily trend of FII/MF investment in equities On Feb 19 2008, FIIs were net buyers of stocks to the tune of Rs1,585.10 crore (purchases worth Rs3,788.300 crore and sales of Rs2,203.20 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs326.80 crore (purchases worth Rs618.70 crore and sales of Rs945.50 crore).
A look at the Indian ADRs
Company Name
Last Close ($)
% Change
Infosys
41.24
0.49
Satyam
26.39
0.34
Wipro
11.59
0.87
Dr.Reddy's
13.86
0.73
Tata Motors
17.99
-2.39
ICICI Bank
58.32
-0.77
HDFC Bank
116.98
1.20
MTNL
6.27
0.32
VSNL
25.32
0.68
Rediff
8.61
-2.27
(Indian ADRs: Indian companies listed on the New York Stock Exchange)
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