Markets may rebound from recent lows; IT shares in focus

Markets are likely to rebound in early trades after losses in the previous seven straight sessions but fresh selling in index heavyweights could cap upside gains later in the day.

At 8:25AM, the early indicator SGX Nifty was down 2 points at 8,460.

On Thursday, following the expiry of March derivative contracts benchmark share indices ended at their lowest closing levels since January 14, 2015 and also registered the highest percentage drop since January 6, 2015 amid emerging geo-politicial crisis in the Middle East.


Asian stocks were trading mixed with shares in Japan recovering after losses in the previous session after encouraging jobs and services sector data from the US helped improve market sentiment. The benchmark Nikkei was up 0.4% while Chinese shares were trading 0.2% lower and Hang Seng also mirrored weakness in the mainland and was down 0.3%. However, Singapore’s Straits Times was up 0.3%.

Major US stock indices extended losses for the fourth straight session on Thursday despite a recovery from intra-day lows as the emerging tensions in the Middle East dampened investor sentiment. Meanwhile, the US Labour Department said that the jobless claims declined 9,000 to a seasonally adjusted 282,000 for the week ended March 21. Further, Market said its flash Purchasing Managers’ Index for the services sector grew 58.6 in March, the highest in six months. The Dow Jone industrial average ended down 40 points at 17,768.23 while weakness in biotechnology stocks weighed on the tech-laden Nasdaq which ended 13 points lower at 4,863.36 and the broader S&P 500 ended down 5 points at 2,056.


Cadila Healthcare may gain after the company said it has purchased 50% shares of Zydus BSV Pharma Private Limited (Zydus BSV) from Bharat Serums and Vaccines Limited.

Pipavav Defence may firm up on media reports that the bankers have approved the corporate debt restructuring package.

IT shares may be in focus after reports suggest that global IT major Accenture has raised its revenue growth forecast for the current year.

PMC Fincorp may see some action after its board of directors approved increase in the overall investment limit by foreign institutional investors to 49% from 24% subject to approval of the shareholders.

Telecom shares could extend gains following the end of the spectrum auction. Idea Cellular may gain after the firm won back crucial 900MHz spectrum across 9 service areeas which contribute 73% to the revenue.

IRB Infrastructure may firm up after the committee approved the issue and allotment of 19.08 million equity shares to eligible qualified institutional buyers at the issue price of Rs. 230.54 per equity share.

Biocon may gain after the board today approved the payment of Interim Dividend at a rate of 100% i.e. (Rs. 5/- per share) for the Financial Year 2014-15.