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Domestic stock indices are seen opening flat to positive yesterday amid subdued cues from overseas markets, and uncertainty over the Parliament's winter session proceedings will keep trade in a thin band. The US stock market was closed on Thursday for Thanksgiving Day, and the Japanese market is shut yesterday for Labor Thanksgiving Day. Back home, the first day of the winter session of the Parliament on Thursday witnessed heat waves, with both houses being adjourned following uproar on the government's decision to allow foreign direct investment in multi-brand retail. Prime Minister Manmohan Singh has called for an all-party meeting on Monday to discuss the FDI issue. The winter session would be a crucial test for the government to not just resolve issues but also to prove its political acumen.
Despite the continuing political worries, we see scope for the Nifty to test 5650-5680 as it managed to sustain above 5600 for the second session on Thursday. On the downside, the 50-stock index may find support at 5580. Among stocks, Hindustan Copper, which ended up 11.3% at 266.15 rupees on Thursday, will remain in focus yesterday as well as the government's ambitious 300-bln-rupee divestment programme will kick start with a 4% stake sale in the state-owned company through an offer for sale. The company has set a floor price of 155 rupees per share for the sale, which is at a steep 42% discount to Thursday's closing price. Blue Dart Express stocks will also see some price action as its promoter DHL Express (Singapore) Pte will yesterday sell 6.03% stake in the company via an offer for sale, the floor price for which has been set at 1,720 rupees a share. On Thursday, stocks of the company ended locked in 20% upper circuit at 2,059.55 rupees.
Stocks of Siemens will take cues from the company's Jul-Sep earnings, due yesterday. The company's net profit may rise by merely 2% on year to 1.81 bln rupees in Jul-Sep due to foreign exchange loss and slowdown in order execution and order intake. Cinemax India could gain on news that the company's promoters plan to sell stake in it. The stock will also be supported by a separate report that PVR is set to buy out the multiplex chain and has offered to buy the promoters' stake at 170-180 rupees per share. Stocks of NTPC may gain support from news that the Cabinet Committee on Economic Affairs has approved a 9.5% stake sale in the company.
HCL Infosystems is likely to see buying on news of the company's pact to exclusively distribute UK-based Intec's speciality-printing systems in India. Stocks of Bharti Airtel, Idea Cellular, and Mahanagar Telephone Nigam could register gains on the companies' subscriber data for October. Idea added 239,248 subscribers in October after losing 508,782 in September, while Bharti added 491,570 subscribers in October versus a loss of 981,621 subscribers in September. MTNL's subscriber base rose by 13,652 in October after shrinking by 14,756 subscribers in September. Stocks of Bharat Petroleum Corp may rise on a report that the company's 142.25-bln-rupee integrated refinery expansion project at Kochi has received clearance from the environment ministry.
