Indices to open positive

Resistance could set in soon as investors will remain cautious ahead of the earnings season.

India has grown faster than similarly rated peers over the last decade due to favorable demographics, economic diversity, as well as high savings and investment rates, says Moody’s. The rating agency just affirmed the Government of India's Baa3 issuer and senior unsecured ratings and changed the rating outlook to positive from stable. Moody's has also affirmed India's P-3 short-term local currency issuer rating. The driver for the rating outlook change is Moody's view that India's policymakers are establishing a framework that will likely allow India's growth to continue to outperform that of its peers over the medium-term; and improve India's macro-economic, infrastructure and institutional profile.

The Modi government will feel a bit elated as Moody's decision to revise the ratings outlook to positive from stable is based on its view that there is an increasing probability that actions by policy makers will enhance the country's economic strength and, in turn, the sovereign's financial strength over coming years. The government has been pitching with rating agencies for an upgrade saying India deserves a better rating.

Indian equity indices, which ended higher on Wednesday, could see a spurt at start. Resistance could set in soon as investors will remain cautious ahead of the earnings season.

Reliance may remain in focus after it hit upon a very significant gas discovery in the MJ-1 field of the KG-D6 basin. US indices ended with marginal gains reacting to minutes from Federal Reserve meeting which hinted the Fed was on track for an interest rate hike this year.

The Dow rose 0.15%, the S&P 500 added 0.27% and Nasdaq closed 0.8% higher.  Asian indices are in the green but not really very up.

A group of investors led by bulge-bracket private equity firm Advent International along with Temasek, the investment company of the government of Singapore, are set to buy the consumer business of Crompton Greaves, said multiple sources who are directly involved in the deal, according to a report.

The Prime Minister, Narendra Modi, said that supporting the small entrepreneurs of India is the biggest way to help the Indian economy grow and prosper. He was speaking at the launch of the Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency) Yojana in New Delhi. Stressing the contribution of small entrepreneurs in the economy, the Prime Minister expressed confidence that within a year’s time, the major banks would also adopt the MUDRA model.  

Snapdeal announced that it has acquired FreeCharge, India’s fastest growing mobile transactions platform. This is one of the biggest acquisitions in the history of the internet industry in India and sets up Snapdeal to build the most impactful digital commerce ecosystem in India.

Marking the first divestment of the current fiscal a success, the OFS of Rural Electrification Corporation (REC) was fully subscribed. The REC OFS has received bids for 5.45 crore as against the issue size of 4.93 crore shares. The issue is subscribed 1.1 times which in the general category, it was subscribed 1.24 times.

Earlier, the government had fixed the floor price for the proposed 5% stake sale in Rural Electrification Corporation (REC) at Rs 315 per share. The indicative price was at Rs.316 per share as compared to floor price of Rs.315 per share.

Netherlands-based Royal Dutch Shell has reportedly agreed to buy out Britain-based BG Group, and the estimated size of the deal is GBP 47 billion in cash and stock. If the deal comes through, it would be the first merger in a decade for two oil firms, which would then look to close the gap with the world's largest oil major, ExxonMobil. 

Shares of real-estate companies were in focus after the government approved setting up of a regulator to protect home buyers and improve the credibility of the real estate sector.

Sobha and HDIL were up over 3% each at Rs. 412 and Rs. 133, respectively. Unitech and Indiabulls Real Estate rallied 2.3 percent each to Rs. 17.50 and Rs. 72, respectively.

Videocon Industries ended 3% higher to Rs. 160 after company's arm Videocon d2h made its debut on Nasdaq, raising $ 325 mn through issuance of American Depository Receipts (ADRs).

Glenmark Pharma ended 5% higher to Rs. 884 after the company approved hike in FII investment limit from 35.07 percent to 49 percent.

Dr.Reddy's Laboratories closed 2% up at Rs. 3,755 on the back of filing three new NDAs (New Drug Applications) with the US FDA. 

Coal India stock ended 6% higher to Rs. 380 on reports that the government lifted its ban on the limit of e-auction sales. 

IFCI stock ended 3% higher to Rs 34 after the Government of India increased its holding from 47.93 percent to 51.04 percent of the paid-up share capital of the company.

Reliance Industries closed 4% higher to Rs. 865 on reports that a foreign investment firm (Morgan Stanley) has retained its overweight stance on the company.

Ceat is trading on a positive note on media reports that the company is planning to raise around Rs. 250-300 crore from private equity firms and has mandated Kotak Investment Banking as advisor.

Sesa Sterlite stock ended 2% lower  following a ratings downgrade on the parent company.