(RTTNews) - Friday, the Indian market may open higher on the back of firm global cues as investors await a vote on a massive U.S. economic stimulus package. Expectations of a 50-basis point rate cut by the RBI over the next couple of weeks and reports that the government could make changes to tax rates in its interim budget may also add to the positive momentum.

That said, cautious undertone might continue on account of profit taking and weekend considerations.

Meanwhile, the Bank of England cut its key lending rates by 50-basis points to a historic low of one percent in a further attempt to stimulate the economy and stave off a deepening recession. However, the European Central Bank left its key interest rate unchanged at 2 percent, pausing in a recent campaign of cuts that began in October.

Currently, markets across the Asia-Pacific region are trading higher. China’s Shanghai Composite index is rising 1.95%, Hong Kong’s Hang Seng index is gaining 2.06% and Japan’s Nikkei 225 index is up 2.51%.

Overnight, stocks on Wall Street rose following impressive gains in retail, banking and technology stocks despite a string of bad economic reports. Sentiment was upbeat on expectations that the U.S. government would bring in changes in accounting rules that would stem bank write-downs and spur lending.

Hopes about improvement in consumer and business spending and encouraging results from Akamai Technologies Inc boosted demand for technology stocks, while retail stocks attracted interest after Wal-Mart Stores Inc. and Macy’s Inc. reported better-than-expected sales for January. The Nasdaq Composite index rose 2.06%, the Dow Jones Industrial Average advanced 1.34% and the S&P 500 index added 1.64%.

However, the Indian ADRs ended mixed. Reddy’s Laboratories rose 2.77%, HDFC Bank gained 2.79% and ICICI Bank added 0.99%, while the others closed on a negative note. Among the major decliners, Sterlite Industries plunged 10.37%, Satyam Computers tumbled 5.73% and MTNL declined 1.39%.

After trading in a narrow range, the rupee settled at Rs.48.78, up 4 paise against the dollar on Thursday, helped by dollar sales by exporters. However, weakness in the stock market and dollar demand from oil companies restricted further gains.

The Indian market fell sharply on Thursday amid weak global cues following the release of a string of dismal corporate earnings reports from major companies in the U.S. and due to uncertainty about an economic stimulus plan for rescuing U.S. banks. Weak corporate outlook and selling by foreign funds thus far in the new calendar year also weighed on sentiment. The BSE Sensex finished at 9,091, down 111 points or 1.21% over the previous close and the S&P CNX Nifty closed at 2,780, down 23 points or 0.82%.

Stocks to Watch

Dr Reddy’s Laboratories may be in focus after the company said that it had launched five generic drugs in the U.S. market in January.

ACC could move after the company’s consolidated net profit for the financial year ending December fell 23% to Rs.1099.65 crore from Rs.1427.34 crore last year.

Tata Motors may rise on reports that it is likely to launch its small car Nano on March 3.

Shoppers Stop could see some activity after the company said that it has entered into a MOU with Amalgamated Bean Coffee Trading Company (ABCTCL) which will permit ABCTCL to operate Cafe Coffee Day from the stores owned or operated by Shoppers Stop.

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