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Domestic stock indices are likely to open higher today taking positive cues from the overseas markets but profit booking ahead of the weekend may limit the upside. Global indices rose due to positive economic data from the US and China, which led to hopes of some stabilisation in the global economy. In the domestic market, Jul-Sep earnings will keep action stock-specific.
Wipro shares are expected to rise 2-3% more due to better-than-expected earnings. In the quarter, the company's consolidated net profit stood at 16.11 bln rupees, higher than estimates of 15.35 bln rupees. Wipro guided for information technology services sales of $1.56 bln-$1.59 bln in Oct-Dec compared with $1.54 bln in Jul-Sep.
Wipro shares rose more than 3% Thursday as viewed positively the move to demerge the company's non-core businesses--consumer care and lighting, infrastructure engineering, and medical diagnostic products and services businesses--into a separate company. We expect the market to be listless and drift to a narrow trading range of 5450-5650 in the near term.
However, we do not foresee much downside on earnings hereon and this will firmly support the market at the lower end of the range. Apollo Tyres, Crompton Greaves, Jet Airways (India), Marico, Mangalore Refinery and Petrochemicals, Multi Commodity Exchange of India, Rural Electrification Corp, Shree Renuka Sugars, and Sobha Developers, among others, will detail their quarterly earnings.
