Can reform measures & global cues push Nifty to 5800 today?

The market is likely to keep its head up in Friday's trade riding on strong global cues and reform measures that the cabinet cleared last evening. Wall Street closed Thursday at record highs led by upbeat economic data.

Back home, the cabinet cleared the proposal for 10 percent divestment in IOC. However, the management told CNBC-TV18 that this is not the right time for stake sale, sentiment is not good given rupee depreciation and rising under-recoveries.

The cabinet has also moved ahead with FDI reforms. It has cleared the proposal to further relax rules for FDI in multi-brand retail. It has ruled in favour of hiking FDI cap in insurance through the automatic route to 49 percent and cleared 100 percent FDI in telecom.

Stock in news

In a block deal, reliance mutual fund sold almost 12 lakh shares of financial tech. Remember the stock tanked 65 percent yesterday after NSEL suspended trading.

Both topline and bottomline of Idea Cellular beat estimates and margins expanded to just below 32 percent in April-JUne. Also, idea will raise Rs 3,000 crore through the QIP route and another Rs 750 crore through a preferential issue to the Axiata group.

The government will sell stake in STC, ITDC and Neyveli Lignite today to raise around Rs 380 crore. The floor price for the STC offer for sale has been set at Rs 74 a share.

SC will hear CBI plea to cancel Unitech MD Chandra's bail in 2G case.

NSE will shift 11 scrips including Nitco and Amar Remedies to restricted trade segment from today.

Essar steel is proposing to raise USD 2 billion via pre-export finance.

Global cues

Asian markets were trading higher. China's Shanghai Composite rose 0.39 percent or 7.92 points at 2,036.99.

Hong Kong's Hang Seng added 0.47 percent or 104.50 points at 22,193.29.  Japan's Nikkei gained 1.80 percent or 251.80 points at 14,257.57.  Singapore's Straits Times was up 0.35 percent or 11.49 points at 3,254.78. South Korea's Seoul Composite advanced 0.60 percent or 11.43 points at 1,932.17.

Taiwan's Taiwan Weighted was up 0.87 percent or 69.86 points at 8,126.08.

In US, markets closed at record highs propelling the S&P 500 above the 1,700 mark for the first time, as Wall Street cheered a round of upbeat economic data and ahead of the widely-watched government jobs report. So far this year, the Dow and S&P 500 have spiked more than 19 percent, while the Nasdaq has surged an impressive 21 percent. The CBOE volatility index slid below 13.

In Europe, major indices closed with over 1 percent gains reacting to strong US and European data as well as rate decisions from the European Central Bank and the Bank Of England. In data from Europe, Euro Zone manufacturing activity grew for the first time in two years in July.

The European Central Bank has decided to leave key interest rates unchanged

Asset class

In the currency space, the euro dollar is steady above 1.32 to the dollar. The dollar index is sub 82.50 levels. The dollar yen is at around 99.

In commodities, crude prices surge. Brent Crude rises to USD 109 a barrel. Nymex crude too rose 2 percent to USD 108.

From the precious metals space, gold slips towards USD 1300 an ounce.