Sensex, Nifty may open flat with positive bias as China markets recover; Reliance Power, Axis Bank in focus


8.40 am: The BSE Sensex and NSE Nifty are likely to open flat with a positive bias on Friday tracking SGX Nifty and China markets.

At 8.39 am, SGX Nifty was trading 12 points or 0.16 per cent up at 7,584.50.

Asian shares are on course to post their biggest weekly fall in more than four years as investors dumped risk assets on fears over China’s economy and its turbulent financial markets. Hang Seng and Nikkei were up 0.90 per cent and 0.39 per cent, respectively.

US stocks sold off further on Thursday, giving the Dow and S&P 500 their worst four-day starts to a year ever, dragged down by another drop in Chinese equities and oil prices at 12-year lows.

On Thursday, BSE Sensex and NSE Nifty fell for fourth day in a row, tumbling by over two percentage points as China accelerated the depreciation of the yuan, sparking sharp falls in regional equity and currency markets. Markets ended at 4-month low as the benchmark BSE Sensex ended 554.50 points down at 24,851.83. NSE Nifty on the other hand plunged 172.70 down at 7,568.30.

Reliance Power stocks will be in focus as government has declined the company’s request to reconsider restrictions on output from its mines in Moher and Moher Amlohri Extension blocks – linked to its Sasan UMPP as the case is in the court.

Axis Bank: Stocks of the private lender will be in focus as government is considering diluting its 11.7 per cent stake in Axis Bank it holds through the Specified Undertaking of the Unit Trust of India (SUUTI) to meet shortfall in disinvestment proceeds and revenue collection during the current fiscal.