Domestic stock markets are likely to open positive on Thursday, as global markets remain positive. Mid and small-cap stocks, which were under pressure in the last two days, will see some recovery, following the BSE clarification.

The US Senate passing of a $1 trillion bipartisan infrastructure package will keep markets across the globe bullish, said analysts though rising Covid-19 cases and central bank asset tapering on the global economy will weigh on market sentiment.

According to analysts, it was a healthy correction in the mid- and small-cap space, which has been long overdue. Post the correction, some of the mid- and small-cap stocks will see a value buying while headline benchmarks will continue its consolidation phase, they added.

The SGX Nifty at 16,320 (8 am IST) signals a gap up opening of about 40 points, as Nifty futures on Wednesday closed at 16,283.35.

The US indices Dow Jones Industrial Average and S&P 500 have hit record highs on Wednesday. The Dow jumped 220 points at 35,485 and the S&P-500 moved up 0.25 per cent at 4,447.70. Tech-heavy Nasdaq, however, slipped 0.16 per cent at 14,765.10. Asian markets are mixed in early deals on Thursday with Japan, Taiwan and Australia gaining marginally. However, Hong Kong, Korea, China and Thailand are weak.

Small-caps may shine

The BSE on Wednesday clarified the new additional surveillance rules aimed at curbing excessive price movement in securities listed on the trading platform. The exchange in a circular has said that it has partially modified and superseded the notification it released on Monday.

It said that the framework is applicable to BSE Exclusive securities in groups ‘X, XT, Z, ZP, ZY, Y’ and on companies which have market capitalisation of less than ₹1,000 crore. The clarification also said that the securities should have a price of ₹10 and more, as on the date of review, among others. These additional norms will be applicable from August 23.

Going ahead, equity market would be tracking global cues for further direction. Though the passage of infrastructure bill by US Senate is positive, volatility around the US Fed taper talk continues to worry investors, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd. “With clarity emerging on newly enacted rules from BSE, the selling pressure is likely to ease out as the impact of change in rules is expected to not be so severe as earlier feared. Overall, we expect the positive momentum in the market on account of strong domestic economy data, impressive quarterly results and unlocking in various States,” he added.

Result calendar:

Ashok Leyland, Aurobindo Pharma, Ansal Properties & Infrastructure, Apollo Micro Systems, Ashapura Minechem, Avanti Feeds, BPCL, Bharat Forge, Clariant Chemicals (India), Dishman Carbogen Amcis, Dish TV India, Eicher Motors, Engineers India, Finolex Cables, Gujarat Pipavav Port, GR Infraprojects, Hero MotoCorp, HCC, HealthCare Global Enterprises, HUDCO, Ind-Swift Laboratories, IRCON International, IRCTC, JB Chemicals, KNR Constructions, Matrimony.com, Max India, Mazagon Dock Shipbuilders, Mishra Dhatu Nigam, Minda Corporation, Natco Pharma, NMDC, Oil India, Page Industries, Power Finance Corporation, RailTel Corporation of India, RCF, Redington (India), RITES, Sadbhav Infrastructure Project, Schneider Electric Infrastructure, Skipper, Sundram Fasteners, Suryoday Small Finance Bank, Tata Steel, Thyrocare Technologies, Trident, Ujjivan Financial Services, and Venus Remedies will declare their quarterly earnings on August 12.

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