(RTTNews) - Strong liquidity flows and favorable global cues on the back of robust third-quarter earnings from JPMorgan suggest that the Indian market may extend its gains on Thursday. Earnings season thus far has been strong and today, the focus would be on Bajaj Auto and JPHydro.
On a net basis, foreign institutional investors (FIIs) purchased shares worth Rs.1.443.78 crore on Wednesday, provisional data released by the BSE showed. Net purchases by FIIs totaled Rs.999 crore on Monday, according to market regulator SEBI.
The Asian markets are currently trading higher for a third day, after Chinese trade data, a report on Euro zone industrial output and earnings as well as economic reports from the U.S. supported a more optimistic view of the global economy.
On Wall Street, stocks moved higher on Wednesday, as the day's news on the earnings and economic fronts generated considerable buying interest. While the Dow surged up by nearly 145 points or 1.47%, closing above 10,000 for the first time in a year, the Nasdaq gained 1.51% and the S&P 500 advanced 1.75%.
The Indian ADRs also closed sharply higher across the board. Among the top gainers, Sterlite Industries surged up nearly 8% and Wipro rallied 3.64%, while Reddy's Laboratories, ICICI Bank, HDFC Bank and Infosys advanced around 3% each.
Crude oil surged to a yearly closing high on Wednesday, receiving a boost from global equities. A weaker dollar also continued to boost oil's hedge value. Light sweet crude oil climbed to $75.18, up $1.03 on the session.
After losing in the previous two session, the rupee bounced back sharply to finish higher at 46.13 against the dollar on Thursday, up 35 paisa, boosted by rising stocks and a weakening dollar in overseas markets. In corporate news, Reliance Capital hiked its stake in group firm Adlabs Films to over 11 percent through additional purchase of shares in a block deal at Rs.355 a share.
Aditya Birla Nuvo is likely to restructure its financial services business in three phases, reports suggest.
Parsvnath Developers said its consolidate net profit for the second quarter ended September grew nearly three-fold to Rs.61.43 crore from Rs.21.91 crore in the year-ago quarter.
GVK power and Infrastructure is is advanced talks with South Africa's Bidvest Group to raise its stake in Mumbai International Airport, media said. However, the company clarified that it is not aware of the source of this information.
Tata Motors has launched its new generation sedan, Indigo Manza. Cairn India said it completed financing arrangements for $1.6 billion for funding its Rajasthan project.
On Wednesday, the Indian market rose sharply to a new 52-week high, encouraged by earnings announcements and firmer global cues. The BSE Sensex finished at 17,231, up 204 points or 1.20% and the S&P CNX Nifty rose 64 points or 1.27% to 5,118. The BSE mid-cap index moved up nearly 2% and the small-cap index by 1.54%. The market breadth was fairly positive, with 1682 gainers versus 1078 decliners.
