Sensex, Nifty to open on a positive note

The falling rupee could see some pull back later in the day even though importers dollar buying may cap upside. Stocks that have got beaten on account of global weakness could stage a comeback.

Investors and traders may have had some sleepless nights given the way the market has been accelerating on a downhill. But the brakes seem to be applied, albeit temporarily as global cues seem to have picked up their pieces and are looking to put up a smile. There are a host of outside the market developments to keep watch besides the ECB meet later today. US jobless claims and data on petroleum stocks will be keenly watched by global investors. In India, the rainfall data for week ended Jan 20 is expected besides water level in major reservoirs.
The outlook is a better start as indices will look at jumping into the green in the initial minutes of trade. The falling rupee could see some pull back later in the day even though importers dollar buying may cap upside. Stocks that have got beaten on account of global weakness could stage a comeback. Reliance could well lead from the front initially and cherry picking among large caps could keep the indices in a better range. For the next couple of weeks, the range for the Nifty is likely to be between 7240 on the downside and 7550 on the upside. The prominent earnings for the day include Idea Cellular, Biocon, Exide Industries and Hindustan Zinc.

On Wednesday, led by a free fall in Reliance Industries, the Sensex firms’ combined market cap eroded by 69,908.86 crore in a single day. Among the 30 Sensex firms, shares of 27 companies declined on Wednesday, which saw a combined market cap erosion of Rs. 70,388.72 crore. While Bajaj Auto, Hero MotoCorp and Wipro saw their combined market cap surged by 479.86 crore.

Watch out for the Oil PSUs as the Oil Minister to addresses the Fourth India Africa Hydrocarbon Conference in Delhi later today.

The Reserve Bank of India (RBI) Governor Raghuram Rajan said that governments worldwide need to create an underlying framework for growth in the long term for the global economy. "My sense is that at this point if you are an emerging market, you focus on fundamentals, try and get inflation down, try and get your current account deficit down," Rajan was quoted as saying.

In a year end update of office market, global real estate consultants Cushman & Wakefield, recorded a marginal 1% decline in net absorption at 33.5 msf across top eight cities.

The Dow Jones Industrial Average and the S&P 500 index lost 1% each on Wednesday but ended off session lows while the Nasdaq Composite got away with only a minor loss. The Dow Jones Industrial Average and the S&P 500 index lost 1% each on Wednesday but ended off session lows while the Nasdaq Composite got away with only a minor loss.

Sebi panel has recommended favourable tax regime and steps to bring in long-term funds from domestic and overseas investors, according to reports.