MUMBAI, June 18 (Reuters) - Indian shares are poised for a
cautious start on Thursday as some long-term investors enter the
market a day after it fell 2.9 percent to its lowest close in
three weeks.
Trading is expected to be choppy as rising valuations will prompt some profit-taking on an 80 percent rally since early March.
Although the market is vulnerable to bouts of profit-taking, expectations the government will unveil reform plans in its annual budget on July 6 would provide support, traders said.
Top mortgage lender Housing Development Finance Corp and HDFC Bank will be watched after the Economic Times newspaper said they are set to reduce interest rates on term deposits by up to 25 basis points.
Energy giant Reliance Industries is in focus after the Business Standard newspaper said the petroleum ministry directed the firm to make additional allocation of natural gas from its KG basin find to nine power companies from the surplus due to no or low off-take by fertiliser units.
The company's stock has fallen for the past three sessions following an unfavourable court ruling on gas supplies.
Investors will also await data on the wholesale price index. India's wholesale price index (WPI) is forecast to have fallen in the year to June 6 for the first time in at least three decades, heralding a period of annual deflation that analysts said could last up to four months.
Other Asian markets were lower on Thursday, with Japan's Nikkei down 1.7 percent by 0341 GMT, while MSCI's measure of other Asian markets fell 0.6 percent.
Nifty futures traded in Singapore were flat, pointing to a cautious opening in India.
On Wednesday, the benchmark 30-share BSE index ended down 2.91 percent, or 435.07 points, at 14,522.84, its lowest close since May 22.
--------------------MARKET SNAPSHOT AT 0345 GMT--------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 910.71 -0.14% -1.260
USD/JPY 95.74 0.08% 0.080
10-YR US TSY YLD 3.6804 --
0.006
SPOT GOLD 938.9 0.05% 0.500
US CRUDE 71.04 0.01% 0.010
DOW JONES 8497.18 -0.09% -7.49
ASIA ADRS 107.98 0.23% 0.25
STOCKS TO WATCH
* Wockhardt Ltd, after the Indian drug firm said it has sold its German business Esparma to a unit of Germany's Lindopharm Gmbh, as part of a restructuring process.
* Havells India Ltd, after the diversified electrical products maker said it will spend 750 million rupees in FY10 to expand its switchgear facility.
* Trent Ltd after the Tata group-run retail chain posted a 19 percent fall in net profit to 267.5 million rupees in FY09.
FACTORS TO WATCH
* Indian rupee report
* Indian bond report
* Dollar falls vs euro, as Fed hike view undermined
* Oil pauses above $71 as dollar holds steady
* Oil rebounds after supply drop, dollar slips
* Nasdaq advances with tech, but banks curb Dow, S&P
* For closing rates of Indian ADRs (Reporting by Pratish Narayanan and Jasudha Kirpalani; Editing by Dhara Ranasinghe)
((jasudha.kirpalani@thomsonreuters.com; +91 22 6636 9028; Reuters Messaging: jasudha.kirpalani.reuters.com@reuters.net)) Keywords: INDIA STOCKS/PREOPEN (If you have a query or comment on this story, send an email to newsfeedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Trading is expected to be choppy as rising valuations will prompt some profit-taking on an 80 percent rally since early March.
Although the market is vulnerable to bouts of profit-taking, expectations the government will unveil reform plans in its annual budget on July 6 would provide support, traders said.
Top mortgage lender Housing Development Finance Corp and HDFC Bank will be watched after the Economic Times newspaper said they are set to reduce interest rates on term deposits by up to 25 basis points.
Energy giant Reliance Industries is in focus after the Business Standard newspaper said the petroleum ministry directed the firm to make additional allocation of natural gas from its KG basin find to nine power companies from the surplus due to no or low off-take by fertiliser units.
The company's stock has fallen for the past three sessions following an unfavourable court ruling on gas supplies.
Investors will also await data on the wholesale price index. India's wholesale price index (WPI) is forecast to have fallen in the year to June 6 for the first time in at least three decades, heralding a period of annual deflation that analysts said could last up to four months.
Other Asian markets were lower on Thursday, with Japan's Nikkei down 1.7 percent by 0341 GMT, while MSCI's measure of other Asian markets fell 0.6 percent.
Nifty futures traded in Singapore were flat, pointing to a cautious opening in India.
On Wednesday, the benchmark 30-share BSE index ended down 2.91 percent, or 435.07 points, at 14,522.84, its lowest close since May 22.
--------------------MARKET SNAPSHOT AT 0345 GMT--------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 910.71 -0.14% -1.260
USD/JPY 95.74 0.08% 0.080
10-YR US TSY YLD 3.6804 --
0.006
SPOT GOLD 938.9 0.05% 0.500
US CRUDE 71.04 0.01% 0.010
DOW JONES 8497.18 -0.09% -7.49
ASIA ADRS 107.98 0.23% 0.25
STOCKS TO WATCH
* Wockhardt Ltd, after the Indian drug firm said it has sold its German business Esparma to a unit of Germany's Lindopharm Gmbh, as part of a restructuring process.
* Havells India Ltd, after the diversified electrical products maker said it will spend 750 million rupees in FY10 to expand its switchgear facility.
* Trent Ltd after the Tata group-run retail chain posted a 19 percent fall in net profit to 267.5 million rupees in FY09.
FACTORS TO WATCH
* Indian rupee report
* Indian bond report
* Dollar falls vs euro, as Fed hike view undermined
* Oil pauses above $71 as dollar holds steady
* Oil rebounds after supply drop, dollar slips
* Nasdaq advances with tech, but banks curb Dow, S&P
* For closing rates of Indian ADRs (Reporting by Pratish Narayanan and Jasudha Kirpalani; Editing by Dhara Ranasinghe)
((jasudha.kirpalani@thomsonreuters.com; +91 22 6636 9028; Reuters Messaging: jasudha.kirpalani.reuters.com@reuters.net)) Keywords: INDIA STOCKS/PREOPEN (If you have a query or comment on this story, send an email to newsfeedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
