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Benchmark indices are expected to open flat amid mixed cues from key Asian markets, but we do not rule out further upside given the recent strong inflows from foreign institutional investors. Foreign institutional investors net bought stocks worth 17.0 bln rupees on Wednesday, and provisionally net bought stocks worth 10.7 bln rupees on Thursday. On Thursday, the Nifty breached the 6180-level, but failed to sustain above it. The index ended at 6169.90, up 23.15 points, or 0.4% from Wednesday. The S&P BSE Sensex closed at 20247.33, up 34.37 points or 0.2%. The MCX Stock Exchange's SX40 ended at 11954.49, up 29.35 points, or 0.2%. Nifty will face resistance at 6190 levels, and is likely to find support in the 6130-6140 range. Gains are likely to sustain, because the markets are in a very strong momentum and technical parameters are in sync. Investors will also eye Jan-Mar earnings for cues.
A robust growth in revenue from the cigarettes business due to price hikes, and sustained improvement in non-cigarette business are likely to boost ITC's bottomline by 16% on year to 18.77 bln rupees. JM Financial will also be in the spotlight as its board approved applying for a banking licence. Former Citigroup Inc Chief Executive Officer Vikram Pandit has decided to take a strategic 3% equity stake in the company through an issue of warrants. Among other stocks, Tata Teleservices Maharashtra might be in focus as its promoter Tata Sons plans to sell 51.62 mln stocks of the company through an offer for sale yesterday. The floor price is yet to be announced. Hindustan Petroleum Corp may slip on news that a major fire accident was reported late Thursday at its Visakhapatnam refinery.
